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

Question

Quizplus · Accepted Answer

A current account surplus means that a country is exporting more goods and services and receiving more income from abroad than it is importing and paying abroad. This fits the description of Happyland's international trade situation according to the scenario.

Scenario: Happyland Happyland Is a Country Characterized by Beautiful Beaches, Vast Natural