Scenario: Happyland
Happyland, a country of about 48 million people with beautiful beaches, vast natural resources, and a highly skilled labor force, is encouraging foreign direct investment flows. The country has been exporting textiles, computer hardware, and software. The net result of trade is that Happyland exports far more goods and services and receives more income from abroad than it imports and pays abroad.
-Looking at Happyland's international trade situation, the country is experiencing a ________.
A) current account deficit
B) natural resources account surplus
C) current account surplus
D) capital account surplus

Question

Quizplus · Accepted Answer

Happyland is exporting more goods and services and receiving more income from abroad than it imports and pays abroad, indicating a current account surplus. A current account surplus means that the country is earning more from its exports than it is spending on its imports.

Scenario: Happyland Happyland, a Country of About 48 Million People with Beautiful