An Incremental Cost Is

question 68

Multiple Choice

An incremental cost is

• A) an additional total cost for an activity
• B) a cost that has already been incurred
• C) the difference in total costs between two alternatives
• D) always related to fixed costs

---

Definitions:

Capital Flight

The large-scale exodus of financial assets and capital from a nation due to events such as political or economic instability, reducing the nation's investment capacity.

Net Capital Outflow

The difference between the domestic country's purchase of foreign assets and foreign purchases of the domestic country's assets over a certain period.

Net Exports

The value of a country's total exports minus its total imports, representing the trade balance within a specific period.

Tariffs

Taxes or duties imposed on imported goods to make them more expensive compared to domestic goods, often used to protect local industries.