Bob traps lobsters in Maine and sells them to a restaurant in Egypt.Other things the same,these sales
A) increase U.S.net exports and has no effect on Egyptian net exports.
B) increase U.S.net exports and decrease Egyptian net exports.
C) decrease U.S.net exports and have no effect on Egyptian net exports.
D) decrease U.S.net exports and increase Egyptian net exports.

Question

Quizplus · Accepted Answer

The sales of lobsters from Bob in Maine to the restaurant in Egypt increase U.S. exports because a good is being sold to a foreign country. This will increase U.S. net exports. At the same time, this transaction will decrease Egyptian net exports because a good is being imported from a foreign country. Therefore, choice B is the best answer.

Bob Traps Lobsters in Maine and Sells Them to a Restaurant