The Diagrams Below Show the Import,export,and Net Export Functions for an Economy

question 78

Multiple Choice

The diagrams below show the import,export,and net export functions for an economy. FIGURE 22-1
-Refer to Figure 22-1.The net export function for this economy can be expressed as

• A)NX = 2250 - 450(
• Y).
• B)NX = 450 - 0.2(
• Y).
• C)NX = 2250 - 450.
• D)NX = 0.2Y.
• E)NX = 2250 - .2(I

---

Definitions:

Direct Materials

Raw materials that directly become a part of a finished product and can be easily traced to the product.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, rent, and salaries of support staff.

Period Costs

Period costs are expenses that are not directly tied to production activities and are expensed in the period they are incurred; examples include administrative salaries and marketing costs.

Value Chain

The series of activities and processes that a company performs to add value to its product or service, from raw materials to final product delivery.