If a Country Had a Trade Surplus of $50 Billion

question 177

Multiple Choice

If a country had a trade surplus of $50 billion and then its exports rose by $30 billion and its imports rose by $20 billion,its net exports would now be

• A)$0 billion.
• B)$20 billion.
• C)$40 billion.
• D)$60 billion.

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Definitions:

Financial Assets

Assets that are paper or digital and derive their value from a contractual claim, such as stocks, bonds, or bank deposits.

Expected Utility

A theory in economics that calculates the utility or satisfaction expected from different possible outcomes, accounting for risk and uncertainty.

Stock Tip

Advice or information provided to investors about a stock that is expected to perform well.

Utility of Income

The perceived value or satisfaction obtained from income and the goods and services it can purchase.