Which of the Following Would Contribute to a Canadian Balance

question 58

Multiple Choice

Which of the following would contribute to a Canadian balance of payments surplus?

• A)Canada makes a unilateral tariff reduction on imported goods
• B)Canadian Pacific pays a dividend to a Swiss stockholder
• C)Canada cuts back on Canadian military personnel stationed in Germany
• D)Russian vodka becomes increasingly popular in Canada

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Definitions:

Absolute Advantage

The ability of a country or individual to produce a good or service more efficiently than others, using fewer resources.

Terms Of Trade

How much of one good exchanges for a unit of another good.

Comparative Advantage

The ability of a country or entity to produce a particular good or service at a lower opportunity cost than others, leading to more efficient international trade.

World Output

The total value of goods and services produced across the globe within a specific time frame, often used to measure the economic performance of the global economy.