The Following Table Contains Hypothetical Data for the U

question 122

Multiple Choice

The following table contains hypothetical data for the U.S. balance of payments in a year. Answer the following question on the basis of these data. All figures are in billions of dollars. U.S.
Refer to the table above. What does the figure for net investment income indicate?

• A) Americans invested more abroad than the amount foreigners invested in the U.S.
• B) The size of the net inflow of foreign investment to the United States in that year
• C) The net amount Americans received as interest and dividends on existing American investments abroad
• D) The net amount Americans paid as interest and dividends on existing foreign investments in the United States

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Definitions:

Production Volume

The total quantity of goods or products that a factory or production system can produce over a specific period.

Sales Volume

Refers to the total number of units sold within a given period.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Manufacturing Costs

The total cost related to the production of goods, including raw materials, labor, and overhead expenses.