Question : In national income accounting, net exports refer to ______.
Option 1: exports minus imports
Option 2: imports minus exports
Option 3: exports plus imports
Option 4: imports plus exports
Correct Answer: exports minus imports
Solution : The correct answer is (a) exports minus imports.
In national income accounting, net exports represent the difference between the value of a country's exports and the value of its imports over a specific period. It is calculated by subtracting the value of imports from the value of exports.
Net exports reflect the net flow of goods and services between a country and the rest of the world. A positive value indicates that the value of exports exceeds the value of imports, resulting in a trade surplus. A negative value indicates that the value of imports exceeds the value of exports, resulting in a trade deficit.
