If the Current Account Is in Deficit, Imports of Goods

question 213

True/False

If the current account is in deficit, imports of goods and services exceed exports of goods and services (plus net unilateral transfers).

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Definitions:

Product Differentiation

Product differentiation is the process of distinguishing a product or service from similar offerings in the market to make it more attractive to a particular target market.

Market Power

The ability of a firm or group of firms to control prices or output in a market, often leading to reduced competition.

Economic Profits

The difference between a firm's total revenue and its total costs, including both explicit and opportunity costs.