If There Is a Favourable Balance of Payments, It Means

question 170

Multiple Choice

If there is a favourable balance of payments, it means that

• A) a country exports manufactured goods and imports raw materials.
• B) a country imports more than it exports for each country with which it trades.
• C) a country exports more than it imports for each country with which it trades.
• D) the country has more money flowing into it than out as a result of trade and other transactions.
• E) a country exports raw materials and imports manufactured goods.

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Definitions:

Reference Price

A price point that consumers use as a basis for comparison in judging the actual price of a product or service.

Differentiate Product

Differentiate product involves creating distinctions between products, typically to make a product more attractive by highlighting its unique features compared to competing products.

Prospect Theory

A behavioral economic theory that describes how people decide between alternatives that involve risk, valuing losses and gains differently.

Reference Price

A baseline price used as a comparison point for consumers when evaluating potential purchases.