Suppose a Country's Net Exports Equal Zero

question 27

Multiple Choice

Suppose a country's net exports equal zero.Which of the following will happen if the volume of exports increases without an increase in the volume of imports?

• A) The country will experience a trade surplus.
• B) The country will experience a trade deficit.
• C) The country will experience a budget deficit.
• D) The country will experience a budget surplus.

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Definitions:

Price Reduction

A decrease in the listed price of goods or services, often used as a strategy to increase sales or competitive position.

Unit Sales

The quantity of individual items or products sold by a company, often used to measure business performance.

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from gross income.

Special Order

A one-time customer order often requiring customization or a deviation from standard production practices.