An Unfavorable Balance of Trade Occurs When

question 54

Multiple Choice

An unfavorable balance of trade occurs when:

• A) exports equal imports.
• B) the balance of payments balances.
• C) the current and capital account in the BOP are equal.
• D) the value of the exports of goods exceeds the value of the imports of goods.
• E) the value of the exports of goods is less than the value of the imports of goods .

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Definitions:

Marginal Revenue Product

The extra income obtained by utilizing an additional unit of a resource.

Marginal Revenue Product

The additional revenue generated from using one more unit of a resource or input in the production process.

Marginal Product

The additional product created when one unit of a certain input is added, with all other inputs held steady.

Marginal Revenue Product

The increased earnings resulting from the utilization of one additional unit of a production resource.