When the balance of trade is in balance, we know with certainty that
A) the value of all debit transactions equals the value of all credit transactions.
B) the value of exports of goods equals the value of imports of goods.
C) the value of capital exports equals the value of capital imports.
D) the value of exports of goods and services equals the value of imports of goods and services.
B
You might also like to view...
Net taxes are indirect business taxes plus transfer payments
a. True b. False Indicate whether the statement is true or false
In an open economy, aggregate supply consists of domestic production
a. plus imports. b. plus exports. c. minus imports. d. minus exports.
Opportunity cost is the value of
A) the best (or most highly valued) forfeited alternative. B) the chosen alternative. C) a free good. D) all forfeited alternatives.
Refer to Figure 6.4. Suppose that the current price is set at C and Q1 units of a good are traded. Which of the following statements is incorrect?
A. The quantity supplied is smaller than the quantity demanded. B. A buyer's willingness to pay is greater than a seller's willingness to accept. C. The producer surplus would increase should the price rise. D. Total surplus would increase should the price fall.