Assume in Base Year 1990,the Index for the Volume of Exports

question 12

Multiple Choice

Assume in base year 1990,the index for the volume of exports is equal to 100,and we find that,for the 2004 fiscal year,the US price index for exports has risen 3 percent,the price index for imports has fallen by 4 percent,and the index for the volume of exports is 95 in 2004.What is the value of the U.S.income terms of trade?

• A)95.1
• B)101.9
• C)88.6
• D)106.7

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products, calculated before the production process begins.

Direct Labour Costs

Expenses related to employees who are directly involved in the production of goods or services.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual units of production, based on estimated costs.

Direct Materials

These are raw materials that are directly traceable to the manufacturing of a product.