If Net Exports Are Negative

question 218

Multiple Choice

If net exports are negative

• A)net foreign investment is also negative.
• B)capital inflows must be less than capital outflows.
• C)net foreign investment is positive.
• D)Both A and B are correct.

Analyze the role of situational factors in the effectiveness of charismatic leadership.

Understand the concept of transactional leadership and its focus on exchanges between leader and followers.

Recognize the significance of moral and ethical considerations in transformational leadership.

Examine how leadership theories are applied in various disciplines and contexts.

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Definitions:

Pigouvian Tax

A tax imposed on activities that generate negative externalities, intended to correct an inefficient market outcome by internalizing the external costs.

Efficient Level

A point at which resources are allocated in the most effective manner, maximizing output without wasting resources.

Excludable

A characteristic of a good or service that allows its owner to prevent others from using it without permission.

Nonrival

A characteristic of a good whereby one person's consumption does not diminish the availability of the good for consumption by others.