If a Country Is Exporting More Goods and Services Than

question 64

Multiple Choice

If a country is exporting more goods and services than it is importing,we should consider this to be "beneficial" only in the sense that it

• A)allows a country to add to its foreign-exchange reserves above the level needed to cope with fluctuations in private payments.
• B)represents an accumulation of assets for the domestic economy that can be used in the future to finance consumption.
• C)increases the standard of living through a larger national income.
• D)is a necessary condition to enable a country to take full advantage of scale economies.
• E)means that an economy is earning more than it is spending.

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Definitions:

Appetitive

Refers to behaviors or processes associated with seeking out and approaching positive or desired stimuli.

Fixed Patterns

A term that refers to repeatable and predictable behaviors or sequences observed in natural or designed systems.

Taxes

Movements or orientations of an organism in response to external stimuli.

Fixed Action Patterns

Instinctive behavioral sequences that are relatively invariant within the species and are triggered by specific stimuli.