The Trade Theory That Says a Country Should Export More

question 66

Multiple Choice

The trade theory that says a country should export more than it imports is known as ________.

• A)mercantilism
• B)absolute advantage
• C)comparative advantage
• D)import substitution

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Definitions:

Real Incomes

Refers to the income of individuals or nations after adjusting for inflation. It represents the purchasing power over goods and services.

Federal Tax Revenues

The income that the federal government receives from taxes, including income taxes, payroll taxes, and other taxation forms, used to fund public services and government operations.

Economy

The system of production, distribution, and consumption of goods and services within a specific geographic region.

Personal Income Tax

A tax levied on the income of individuals, with the rate usually increasing as income increases.