Which Statement Is True

question 175

Multiple Choice

Which statement is true?

• A)Since 2007,the U.S.trade deficit has fallen significantly.
• B)Net exports has always been negative.
• C)The U.S.exports more services than merchandise (in terms of dollars).
• D)The U.S.balance of trade was negative for most of the 20^th century.

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Definitions:

EOQ

Economic Order Quantity is a formula used by businesses to determine the ideal order quantity that minimizes inventory costs including holding, shortage, and order costs.

Capital Cost

The upfront expenditure required to acquire or improve fixed assets such as buildings, machinery, or equipment, contributing to the productive capacity of a firm.

Hurdle Rate

The minimum rate of return on an investment that a business requires before it will proceed with the project.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital where each category of capital is proportionately weighted.