Suppose Exports Are Greater Than Imports

question 6

Multiple Choice

Suppose exports are greater than imports.Given this information,we know with certainty that

• A)a trade surplus exists.
• B)GNP > GDP.
• C)GNP < GDP.
• D)the change in business inventories is positive.

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Definitions:

Book Income

The income reported by a business according to accounting principles, before taxation.

Permanent Difference

A discrepancy between the book income and taxable income that is not temporary and will not reverse in the future, affecting the company's tax and financial reporting differently.

Book Income

The income reported by a company in its financial statements according to the applicable accounting rules, which may differ from taxable income.

Taxable Income

The amount of income that is subject to income tax after deductions and exemptions.