One Economic Advantage of a Large Share of Exports in GDP

question 45

Multiple Choice

One economic advantage of a large share of exports in GDP is that countries

• A)can reduce their budget deficits.
• B)can purchase the imports they need.
• C)can maintain lower rates of unemployment.
• D)will have greater equality in their incomes.
• E)develop more labor-intensive industry.

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Definitions:

Natural Gas

A fossil fuel formed from the remains of ancient marine organisms, used as an energy source and feedstock in various industrial processes.

Transportation

The process of moving goods, people, or animals from one location to another using various modes such as road, rail, air, or waterways.

Safety Inventory

A buffer of stock kept on hand to protect against variability in demand or supply, ensuring that a product remains available for customers despite uncertainties.

Low Demand

Refers to a situation where the market's desire for a product or service is lower than the supply.