If USNet Exports Are Positive,then Net Capital Outflow Is

question 93

Multiple Choice

If U.S.net exports are positive,then net capital outflow is

• A)positive,so foreign assets bought by Americans are greater than American assets bought by foreigners.
• B)positive,so American assets bought by foreigners are greater than foreign assets bought by Americans.
• C)negative,so foreign assets bought by Americans are greater than American assets bought by foreigners.
• D)negative,so American assets bought by foreigners are greater than foreign assets bought by Americans.

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Definitions:

Absorption Costing

A technique in accounting that ensures all expenses related to production, including direct materials, direct labor, as well as variable and fixed overhead costs, are factored into the product’s cost.

Fixed Costs

Fixed expenses that are unaffected by changes in production or sales volume, encompassing rent, salaries, and insurance.

Absorption Costing

A method of accounting for all the costs associated with manufacturing a product, including all direct costs and fixed and variable overhead expenses.

Variable Costing

An accounting approach where only variable manufacturing costs are included in product costs, excluding fixed manufacturing overhead.