If Net Capital Outflow Is Positive, Then

question 119

Multiple Choice

If net capital outflow is positive, then:

• A) exports must be positive.
• B) exports must be negative.
• C) the trade balance must be positive.
• D) the trade balance must be negative.

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Definitions:

Favorable Variance

A financial term indicating that actual costs were less or actual revenues were more than what was budgeted or forecasted.

Variable Cost

Variable costs vary directly with the level of production output, including expenses like raw materials and direct labor.

Flexible Budget

A dynamic budget that recalibrates based on fluctuations in operational volume or activity.

Output

The quantity of goods or services produced by a company during a specific period.