In a Small Open Economy, If Exports Equal $15 Billion

question 21

Multiple Choice

In a small open economy, if exports equal $15 billion and imports equal $8 billion, then there is a trade and net capital outflow.
 

• A)deficit; negative
• B)surplus; negative
• C)deficit; positive
• D)surplus; positive

---

Definitions:

Wholesale Distributor

A business that buys goods in large quantities from manufacturers and resells them in smaller quantities to retailers or other businesses.

Educational CD-ROMs

Digital storage media used to store and access educational content and interactive learning programs.

Production Volume

The quantity of products manufactured or processed in a given period, reflecting the scale of operations and efficiency of production processes.

Mixed Cost

Mixed cost includes both fixed and variable components, meaning part of the cost varies with the level of activity while the other part remains constant.