Which of the Following Is Not a Reason Why Exports

question 42

Multiple Choice

Which of the following is not a reason why exports are important in a macroeconomic sense?

• A)They bring in technology and skills.
• B)They can affect currency values and the fiscal and monetary policies of governments.
• C)They shape public perception of competitiveness.
• D)They determine the level of imports a country can afford.

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Definitions:

Profit Maximizing

The process or strategy of adjusting production and operation levels to achieve the highest possible profit.

Shutdown Condition

A criterion in economics indicating the point at which a firm's revenue is not sufficient to cover its variable costs, prompting it to cease operations.

Marginal Cost Curve

A curve that graphically represents the cost of producing one additional unit of a good, typically illustrating how marginal cost varies with the quantity produced.

Competitive Firm

A company operating in a market where it has to set its prices based on the market conditions because it has little to no influence over the market prices.