How Are Net Exports of a Country Determined

question 98

Multiple Choice

How are net exports of a country determined?

• A) the value of goods and services imported minus the value of goods and services exported
• B) the value of goods and services exported minus the value of goods and services imported
• C) the value of goods exported minus the value of goods imported
• D) the value of goods imported minus the value of goods exported

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Definitions:

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs necessary for the production of goods or services.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own use, without any direct payment made.

Opportunity Cost

The worth of the best alternative given up to make a choice.

Accounting Profit

The financial gain calculated by subtracting total expenses from total revenues, according to standard accounting principles.