Which of the Following Statements Is Correct

question 171

Multiple Choice

Which of the following statements is correct?

• A) Imports are the goods and services that are produced domestically and consumed abroad.
• B) Transfer payments refer to the payments made to foreign firms.
• C) Exports refer to the goods and services that are produced abroad and consumed domestically.
• D) Net exports are the value of a country's exports minus the value of its imports.

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Definitions:

Sample Information

Information or data collected from a subset of a larger population, used to infer characteristics or parameters of the whole population.

Expected Monetary Value

A decision-making tool used to determine the average outcome of a set of uncertain possibilities, taking into account the probability and monetary value of each outcome.

Perfect Information

A situation in which all participants have access to all relevant information in a market or decision-making situation.

Prior Probabilities

The probabilities of possible outcomes based on existing knowledge before the arrival of new evidence.