What Is Most Likely to Increase Exports in the Country

question 154

Multiple Choice

What is most likely to increase exports in the country of Lexburgh?

• A) a reduction in political instability
• B) ending investment tax credits
• C) a reduction in the size of the government's budget surplus
• D) an import quota

---

Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Fixed Costs

Expenses that do not change with the amount of goods or services produced, such as rent, salaries, or insurance.

Variable Cost

Costs that change in proportion to the goods or services that a business produces.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by summing the present values of all cash inflows and outflows associated with the investment.