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:

Irrevocable Right

A legal entitlement or authority that cannot be revoked, altered, or undone once it has been granted or established.

License

A revocable right to use another’s property temporarily.

Real Property

Land and anything permanently attached to it, such as buildings or trees.

Mineral Rights

Refers to the ownership rights related to the natural resources located below the surface of the land, such as oil, gas, and minerals.