A Small Open Economy Would Typically Enjoy a Higher Trade

question 8

Multiple Choice

A small open economy would typically enjoy a higher trade balance if,in the domestic economy,________.

• A)autonomous consumption expenditures increase
• B)taxes decrease
• C)government spending decreases
• D)all of the above
• E)none of the above

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Definitions:

Favorable

A term often used in budgeting and financial reporting to indicate results that are better than expected or budgeted.

Unfavorable

A term often used in accounting and finance to describe a situation or variance that results in a worse-than-expected financial outcome.

Total Actual Cost

The complete amount spent on a project or production, including direct and indirect costs up to the current point in time.

Variable Overhead Spending Variance

The difference between the actual variable overhead incurred and the standard variable overhead allocated to the actual production achieved.