A Favourable Balance of Trade Occurs When the Value Of

question 109

Multiple Choice

A favourable balance of trade occurs when the value of:

• A)imports equals the value of exports.
• B)the dollar is greater than the value of the euro.
• C)cash inflows equal the value of the cash outflows.
• D)imports is less than the value of exports.

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Definitions:

Minimum Annual Income

The lowest yearly income deemed necessary for a person or family to meet their basic living expenses.

Necessities

Necessities are basic needs or essential items required for living, such as food, clothing, and shelter.

Ability-To-Pay Principle

A taxation principle that suggests taxes should be levied according to an individual or entity's ability to afford them, often implying higher taxes for those with higher income.

Pigouvian Subsidies

Financial incentives given by the government to encourage activities that have positive external effects on society.