The Shipment of Goods or Rendering of Services to a Foreign

question 40

Multiple Choice

The shipment of goods or rendering of services to a foreign buyer located in a foreign country is:

• A) Importing.
• B) Exporting.
• C) Foreign exchange.
• D) A and B.

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Definitions:

Normal Goods

Goods for which demand increases as consumer income rises, and decreases as consumer income falls.

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in consumers' income.

Inferior Good

A type of good for which demand decreases when the income of the consumer increases, inversely related to consumer income.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, in contrast to a normal good.