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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


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

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.

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