In Adding the Nation's Total Output,which of the Following Best

question 147

Multiple Choice

In adding the nation's total output,which of the following best describes net exports?

• A)They always total to a positive figure.
• B)They would include purchases of Canadian automobiles by foreigners plus purchases of foreign automobiles by Canadian citizens.
• C)They are a positive number when the value of exports from Canada exceeds the value of imports into Canada.
• D)They represent exports of final goods and services plus imports of final goods and services.

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Definitions:

Positive Externality

A beneficial effect experienced by a third party or the society as a whole, resulting from an economic transaction.

Market

The environment in which buyers and sellers interact to exchange goods, services, and information, setting prices through supply and demand.

Socially Optimal Quantity

Socially Optimal Quantity is the level of production or consumption of a good or service that results in the maximum possible economic efficiency and welfare, taking into account all social costs and benefits.

External Benefit

A positive effect or advantage that results from a product or service's use, extending beyond the direct buyer or consumer to others not involved in the transaction.