The Balance of Trade Is

question 56

Multiple Choice

The balance of trade is

• A) the difference between exports and imports of goods and services.
• B) the difference between exports and imports of services.
• C) the summary record of a country's economic transactions with foreigners in a year.
• D) none of the above.

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Definitions:

Laptop Computers

Portable personal computers with a clamshell form factor, suitable for mobile use and equipped with advanced computing capabilities.

Income Effect

The variation in a person's or an economy's earnings and the impact of this variation on the demand for a specific product or service.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one product for another.

Diminishing Marginal Utility

The principle stating that as a person consumes more of a good, the additional satisfaction derived from consuming an additional unit lessens.