If a Country Is Exporting More Goods and Services Than

question 64

Multiple Choice

If a country is exporting more goods and services than it is importing,we should consider this to be "beneficial" only in the sense that it

• A)allows a country to add to its foreign-exchange reserves above the level needed to cope with fluctuations in private payments.
• B)represents an accumulation of assets for the domestic economy that can be used in the future to finance consumption.
• C)increases the standard of living through a larger national income.
• D)is a necessary condition to enable a country to take full advantage of scale economies.
• E)means that an economy is earning more than it is spending.

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Definitions:

1870s

A decade marked by significant events such as the Franco-Prussian War, the establishment of the German Empire, and advances in technology and culture during the late 19th century.

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Retail establishments owned and operated by their consumers to achieve better prices and quality in goods and services.

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An American engineer and industrialist who designed and manufactured the Pullman sleeping car and founded a company town for his workers, contributing to the development of labor relations in the United States.