A Country's Budget Constraint States That

question 43

Multiple Choice

A country's budget constraint states that

• A) whether or not a country engages in trade, the value of goods consumed must be equal to the value of goods produced.
• B) real income in the exporting country must be equal to real income in the importing country.
• C) unless a country engages in trade, the value of goods consumed cannot exceed the value of goods produced.
• D) a country will engage in trade only if the value of goods consumed exceeds the value of goods produced.
• E) a country will engage in trade only if the value of goods produced exceeds the value of goods consumed.

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Definitions:

Growth Strategy

Plans and actions that a company implements to expand its business, increase market share, or develop its operations.

New Products

Goods or services that have been recently developed or introduced to the market.

Market Development

A strategic approach to grow a business by identifying and entering new markets for existing products.

Military Base

A facility directly owned and operated by or for the military or one of its branches that shelters military equipment and personnel, and facilitates training and operations.