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.

Derive marginal utility from changes in total utility.

Understand and calculate consumer surplus.

Recognize the role of price in consumer demand and surplus.

Apply concepts of utility to analyze consumer demand schedules.

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Definitions:

Credit Entry

An accounting entry that increases a credit account or decreases a debit account, representing the source of funds or value entry in a financial transaction.

Direct Material Price

The cost of raw materials that are directly used in the manufacturing of a product.

Actual Production

The real, quantifiable output of goods or services produced by a company during a specific period, as opposed to theoretical or planned production levels.

Normal Production

The standard or average level of production volume that a company expects to achieve under normal operating conditions.