Asked by Christelle Khoury on Jul 08, 2024
Verified
Our trade balance in merchandise is ________ and our trade balance in services is _________.
A) positive,positive
B) negative,negative
C) negative,positive
D) positive,negative
Trade Balance
The gap between what a country sells to and buys from other countries in terms of goods and services.
Merchandise
Goods that are bought and sold in commerce, particularly those related to retail trade.
Services
Intangible products that are consumed at the point of sale and do not result in ownership of physical goods.
- Infer and articulate the importance of trade balances and net exports in shaping the Gross Domestic Product.
Verified Answer
MR
Madison RozanasJul 12, 2024
Final Answer :
C
Explanation :
A negative trade balance in merchandise means that we import more goods than we export, while a positive trade balance in services means that we export more services than we import. Therefore, our trade balance in merchandise is negative, and our trade balance in services is positive.
Learning Objectives
- Infer and articulate the importance of trade balances and net exports in shaping the Gross Domestic Product.