Which of the Following Would Decrease Net Exports in the United

question 141

Multiple Choice

Which of the following would decrease net exports in the United States?

• A)An American party planner purchases 350 piñatas from Mexico.
• B)The government of Mexico purchases 2,000 Dell laptop computers from the United States.
• C)A Mexican citizen purchases 100 shares of stock in IBM.
• D)The U.S.government donates $25 million to Mexico to help victims of a hurricane in Mexico.

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Definitions:

Product Cost

The total of costs directly tied to the production of a product, including raw material, labor, and overhead.

Oil Lubricants

Substances applied to reduce friction and wear between surfaces in mutual contact, which ultimately extends the life of machinery.

Factory Plant

A facility where industrial or manufacturing processes occur, often including buildings and machinery.

Factory Overhead

Costs incurred in the production process that cannot be directly linked to specific products, such as maintenance, utilities, and salaried personnel.