Which of the Following Statements Defines Trade Balance

question 47

Multiple Choice

Which of the following statements defines trade balance?

• A)The trade balance is the sum of the services balance,the current account balance,and the capital account balance.
• B)The trade balance is merchandise exports minus merchandise imports.
• C)The trade balance is the sum of the current account balance and the capital account balance.
• D)The trade balance is foreign purchases of domestic assets minus domestic purchases of foreign assets.
• E)The trade balance is the sum of the services balance and the capital account balance.

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Definitions:

Property Rights

Legal rights to possess, use, and dispose of assets including land, buildings, intellectual property, and other possessions.

Capital Goods

Human-made resources (electrical grids, the GPS system, rail networks) used to produce goods and services; goods that do not directly satisfy human wants; also called capital. One of the four economic resources.

Productive Efficiency

A situation in which a good or service is produced at the lowest possible cost and with the optimal combination of inputs.

Coordination Problem

A challenge faced by individuals or organizations when their interests conflict, requiring them to align their actions or decisions to achieve a common goal.