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

question 12

Multiple Choice

The diagrams below show the import,export,and net export functions for an economy. FIGURE 22-1
-Refer to Figure 22-1.If actual national income in this economy is equal to $1000,then net exports are equal to

• A)$90.
• B)$200.
• C)$250.
• D)$375.
• E)$400.

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Definitions:

Direct Labor

The wages or salaries paid to employees who are directly involved in producing goods or services.

Direct Materials

The raw materials that can be directly traced to the manufacturing of a product and are considered a variable cost.

Profitable Product Lines

Specific categories of products that generate more revenue than the costs associated with their production and marketing.