In a country open to trade, imports count as _______ while exports are _______.
A) income; expenditure
B) expenditure; rental income
C) rental income; expenditure
D) expenditure; income

Question

Quizplus · Accepted Answer

In a country open to trade, imports are considered as an expenditure because the country is spending money to purchase goods and services from foreign markets. On the other hand, exports are considered as income because the country is earning money by selling its goods and services to foreign markets. Therefore, the correct answer is D - imports count as expenditure while exports are income.

In a Country Open to Trade, Imports Count as _______