Which of the Following Statements Is True About the Role

question 229

Multiple Choice

Which of the following statements is true about the role that service exports and imports have in the balance of payments?

• A) Service exports and imports are not included in the balance of payments because it is impossible to transport a service to another country.
• B) Service exports and imports are included in the balance of payments in the labor account.
• C) Service exports and imports are included in the balance of payments in the official reserve transactions account.
• D) Service exports and imports are included in the balance of payments in the current account.

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Definitions:

Political Goods

Political goods are benefits or services provided by governments or political entities that are not easily quantifiable, such as national security or public order.

Competitive Forces

Competitive forces refer to the various external pressures that businesses face in the market, including competition from other firms, the bargaining power of customers and suppliers, and the threat of substitutes.

Competitive Behavior

Actions taken by businesses to gain advantage over their competitors, often through pricing, innovation, or quality improvements.

Aggregate Consumption

The total amount of goods and services consumed in an economy over a specified period.