A Nation with a Current Account Surplus

question 11

Multiple Choice

A nation with a current account surplus

• A) imports more than it exports
• B) is a net borrower
• C) has a future account shortage
• D) has a positive level of net exports
• E) has a price floor set above equilibrium

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Definitions:

Average Cost Formula

A mathematical calculation used to determine the average cost per unit of inventory by dividing the total cost of goods by the total number of units available.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Perpetual Inventory System

An inventory management method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.