Net Exports Is Negative If

question 254

Multiple Choice

Net exports is negative if

• A) too much production occurs in the exporting country during the year.
• B) the tariff payments are included in the value of imported and exported items.
• C) the value of exports exceeds the value of imports.
• D) the value of imports exceeds the value of exports.

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Definitions:

Temporary Price

A price set for a product or service for a limited period before it is expected to change.

Surplus

The situation in which the quantity of a good supplied exceeds the quantity demanded, often leading to lower prices.

Shortage

A market condition when the demand for a product exceeds its supply at a specific price.

Demand and Supply of Wheat

The relationship between the quantity of wheat that producers are willing to sell at various prices and the quantity that consumers are willing to buy.