If a Country Had a Trade Surplus of $100 Billion

question 91

Multiple Choice

If a country had a trade surplus of $100 billion and then its exports rose by $40 billion and its imports rose by $30 billion,its net exports would now be

• A)$110 billion
• B)$90 billion.
• C)$70 billion.
• D)$60 billion.

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Definitions:

Average Variable Cost

The total variable cost divided by the number of units produced, reflecting the variable cost of producing each unit.

Marginal Cost

The cost of producing one additional unit of a good or service, often considered in decision-making about production levels.

Marginal Revenue

The additional income earned from selling one more unit of a good or service; it's a crucial concept for decision-making in businesses.

Economic Profit

The total revenue of a business minus its explicit and implicit costs, representing the surplus remaining after accounting for all costs, including opportunity costs.