The Difference Between the Value of Goods Exported and Imported

question 40

Multiple Choice

The difference between the value of goods exported and imported is the:

• A)current account balance.
• B)financial and capital account balance.
• C)government financial balance.
• D)balance of merchandise trade.

Understand the implications of breaking up natural monopolies for costs, prices, and efficiency.

Understand the basic characteristics and structures of monopolies.

Identify factors that distinguish monopolies from perfectly competitive markets.

Describe how monopolies determine their profit-maximizing level of output and price.

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Definitions:

Imported Watches

Timepieces that are brought into a country from abroad for sale.

Free-Trade Policies

Strategies and agreements between countries to allow goods and services to be traded with fewer restrictions or tariffs.

Importer

An individual or entity that buys goods or services from another country for use, resale, or processing within the importer's home country.

Domestic Price

Domestic price is the price of goods or services within a country, unadjusted for international trade effects or exchange rates.