If a Country Is Exporting More Goods and Services Than

question 91

Multiple Choice

If a country is exporting more goods and services than it is importing, we should consider this to be ʺbeneficialʺ
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:

Bell-Shaped Curve

A graphical representation of a normal distribution, indicating that most occurrences happen near the mean, with fewer observations noted at the extremes.

Coin Flips

A simple randomization technique or decision-making tool where the outcome of a coin toss is used to choose between two alternatives.

Most Probable

Referring to an event or outcome that has the highest likelihood of occurring compared to other possibilities.

Statistical Significance

A measure indicating that the likelihood of an observed effect or difference in a study is not due to chance alone.