Which One of the Following Will Directly Affect Canada's Balance

question 99

Multiple Choice

Which one of the following will directly affect Canada's balance on goods and services, but not affect its balance of trade?

• A)an increase in merchandise exports
• B)a decrease in exports of services
• C)an increase in official reserves
• D)an increase in net transfers

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Definitions:

Selling Price

The price at which a product or service is sold to customers, determined by factors like cost, demand, competition, and market conditions.

Variable Costs

Expenses that vary in relation to the amount of products or services a company generates.

Short Run

A period in which at least one input is fixed and cannot be changed by the firm.

Variable Costing

A cost accounting method that includes only variable costs—costs that change with production levels—in product cost calculations.