By definition, exports are:
1) goods produced abroad and sold domestically.
2) opportunity benefits (as opposed to opportunity costs).
3) a limit placed on the quantity of goods brought into a country.
4) goods produced domestically and sold abroad.
By definition, exports are:
1) goods produced abroad and sold domestically.
2) opportunity benefits (as opposed to opportunity costs).
3) a limit placed on the quantity of goods brought into a country.
4) goods produced domestically and sold abroad.
Related textbook solutions
Related questions
The following table lists balance of payment current accounts for Country A.
| Current Accounts | |||
| 1. | Exports of goods, services, and income | $169,928 | |
| 2. | Goods, adjusted, excluding military | $94,068 | |
| 3. | Services | 46,889 | |
| 4. | Income receipts on U.S. assets abroad | 31,921 | |
| 5. | Imports of goods, services, and income | 151,536 | |
| 6. | Goods, adjusted, excluding military | 84,707 | |
| 7. | Services | 32,289 | |
| 8. | Income payments on foreign assets in the United States | 35,740 | |
| 9. | Unilateral transfers, net | 9,481 | |
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A. What is Country A's total current accounts? _________$ Total current accounts B. What is Country A's balance on goods? _________$ Balance on goods C. What is Country A's balance on services? __________$ Balance on services D. What is Country A's balance on investment income? (Negative amount should be indicated by a minus sign.) __________$ Balance on investment income |
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An economy with zero net exports is described below:
| C | = 100 + 0.6 (Y 'T) |
| I p | = 70 |
| G | = 120 |
| NX | = 0 |
| T | = 150 |
| The multiplier in this economy is 2.5. | |
A. Find short-run equilibrium output.
Instruction: Enter your response as an integer value.
Short-run equilibrium output: .
B. Economic recovery abroad increases the demand for the country's exports; as a result, NX rises to 80.
Instruction: Enter your response as an integer value.
Short-run equilibrium output (Click to select)decreases/ increases to ________ .
C. Assume that foreign economies are slowing, reducing the demand for the country's exports so that NX = -80. (A negative value of net exports means that exports are less than imports.)
Instruction: Enter your response as an integer value.
Short-run equilibrium output (Click to select)increases/decreases to ___________ .
D. Which of the following best describes the tendency of recessions and expansions to spread across countries?
1. Lower planned aggregate spending in one nation will reduce the amount of goods it exports abroad, thereby lowering the value of imports for its trading partners, which will reduce its short-term equilibrium output as well.
2. Lower planned aggregate spending abroad means that fewer goods will be exported from a specific nation, leaving more goods available for domestic consumption (C) in that nation, which will increase its short-term equilibrium output.
3. Lower planned aggregate spending abroad will reduce the amount of investment that flows into domestic industries from other countries, thereby reducing domestic short-term equilibrium output.
4. Lower planned aggregate spending in a nation means fewer imports of foreign goods, thereby reducing the short-term equilibrium output of its trading partners through lower net export (NX) values in those nations.
