Read the two statements and choose the correct option.
I. Net exports can be negative.
II. Exports are part of domestic product even though they are bought by foreigners.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

When imports exceed exports, X − M is below zero. I is true.
Exports are produced within the country, so they are domestic output. II is true.

Ten questions from Measuring National Income, at your own pace.

Ten questions from Measuring National Income, at your own pace.

Read the two statements and choose the correct option.I. Net exports can be negative.II. Exports are part of domestic product even though they are bought by foreigners.