The Sum of Net Exports of Goods and Services Plus

question 59

Multiple Choice

The sum of net exports of goods and services plus net income from abroad plus net unilateral current transfers equals

• A)the trade balance.
• B)the balance on current account.
• C)the capital account balance.
• D)the capital and financial account balance.

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Definitions:

Additional Output

Refers to the extra amount of production a company or economy can generate when it utilizes additional resources or inputs.

Guaranteed Contracts

Agreements that ensure certain terms, such as payment or service delivery, regardless of future circumstances or performance.

Salaries

Regular payments made to employees for their labor or services, typically expressed as annual amounts but paid in smaller increments such as monthly or biweekly.

Variable Cost

Expenses that change in proportion to the level of production or sales in a company.