If a Country Exports More Than It Imports,then It Has

question 147

Multiple Choice

If a country exports more than it imports,then it has

• A)positive net exports and positive net capital outflows.
• B)positive net exports and negative net capital outflows.
• C)negative net exports and positive net capital outflows.
• D)negative net exports and negative net capital outflows.

---

Definitions:

Capital Goods

Long-lasting goods, such as equipment or buildings, used to produce other goods or services.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.

Command Economy

An economy in which a central government either directly or indirectly sets output targets, incomes, and prices.

Labor

Labor describes the human exertion (whether physical or mental) that is applied to the production of goods and services.