Net Exports of Goods and Services Increase When

question 172

Multiple Choice

Net exports of goods and services increase when

• A)exports of goods and services decrease and imports of goods and services do not change.
• B)consumption expenditure increases.
• C)exports of goods and services increase and imports of goods and services do not change.
• D)consumption expenditure decreases.
• E)imports of goods and services increase and exports of goods and services do not change.

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Definitions:

Marginal Cost

The increased expenditure resulting from manufacturing one more unit of a good or service.

Declining

A term describing a situation where a certain quantity or quality is decreasing over time.

Marginal Cost

The additional expense associated with manufacturing one more unit of a specific item.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, ceteris paribus.