Net exports is equal to
A) total exports minus total imports.
B) total imports minus total exports.
C) total exports adjusted for price changes.
D) total exports minus transfer payments.

Question

Quizplus · Accepted Answer

Net exports is the difference between total exports (goods and services produced domestically and sold abroad) and total imports (goods and services produced abroad and purchased domestically). Therefore, option A is the best choice as it correctly takes the difference between these two variables. Option B is the opposite of the correct formula, while options C and D do not reflect the true definition of net exports.

Net Exports Is Equal to