From 1970-2008, the U

question 71

Multiple Choice

From 1970-2008, the U.S. current account moved further into _______, and it was accompanied by a corresponding _____ in the financial account.

• A) surplus; deficit
• B) deficit; surplus
• C) surplus; shortfall
• D) balance; surplus

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Definitions:

Incremental Revenues

Additional income generated from a new project or decision, above and beyond existing revenues.

Incremental Variable Costs

Costs that vary with the level of output or activity, changing as the quantity produced changes.

Fully Depreciated

A status of an asset whose entire cost has been expensed with respect to depreciation, leaving its book value at zero except for salvage value, if any.

Excess Capacity

A situation where a company can produce more goods or services than currently demanded by its market.