When Net Exports Are Negative

question 2

Multiple Choice

When net exports are negative,

• A) exports are greater than investment.
• B) depreciation is greater than net investment.
• C) imports are greater than investment.
• D) exports are greater than imports.
• E) imports are greater than exports.

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Definitions:

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Whitening Agents

Substances used to lighten the color of materials, such as textiles, paper, and in cosmetic formulations to lighten the skin.

Location Differentiation

A strategy businesses use to establish a competitive advantage based on the physical location of a service or product offering.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition.