Net exports is a positive number when
A) a nation's exports of goods and services are increasing.
B) a nation exports goods and services to other nations.
C) a nation's exports of goods and services exceed its imports.
D) a nation's exports of goods and services fall short of its imports.

Question

Quizplus · Accepted Answer

Net exports refers to the value of a nation's exports minus the value of its imports. If a nation's exports exceed its imports, then net exports will be a positive number. Therefore, option C is the correct answer. Option A is incorrect because simply increasing exports does not necessarily mean that net exports are positive. Option B is incorrect because just exporting goods and services does not give any indication of whether net exports are positive or not. Option D is incorrect because if exports fall short of imports, net exports will be negative.

Net Exports Is a Positive Number When