If Exports Total $6

question 29

Multiple Choice

If exports total $6.5 billion and imports total $8.0 billion in a year,then

• A)together imports and exports add $1.5 billion to GDP
• B)together exports and imports add $6.5 billion to GDP
• C)together exports and imports subtract $1.5 billion from GDP
• D)together exports and imports subtract $8.0 billion from GDP
• E)together exports and imports add nothing to GDP

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Definitions:

Unit Contribution Margin

The amount each unit sold contributes to fixed costs and profit after variable costs are subtracted.

Operating Income

The revenue accrued from a firm's foundational business activities, prior to the removal of interest and tax charges.

Fixed Costs

Expenses that do not vary with production volume, such as rent, salaries, and insurance premiums.

Zero Profit

A situation where a business's revenues exactly match its expenses, resulting in no net profit.