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Net earning for the country which may be
1. Positive - if we have exported more in value terms than imported
2. Negative - If imports exceed exports in value terms
3. Zero - If exports and imports were of the same value
Which of the statement/statements is/are correct?
- a)1 and 2 Only
- b)2 and 3 Only
- c)1 and 3 Only
- d)All of them
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
Net earning for the country which may be1. Positive - if we have expo...
- We know that the total money value of all such goods and services produced in a country in a year is called its gross domestic product for that year.
- When we also consider what we pay for our imports and get from our exports we find that there is a net earning for the country which may be positive (if we have exported more in value terms than imported) or negative (if imports exceed exports in value terms) or zero (if exports and imports were of the same value).
- When we add this earning (plus or minus) from foreign transactions, what we get is called the country’s gross national product for that year.
Most Upvoted Answer
Net earning for the country which may be1. Positive - if we have expo...
Net Earnings for the Country
To understand the net earnings for a country, we need to consider its trade balance, which is the difference between its exports and imports. The net earnings can be positive, negative, or zero depending on the value of exports and imports.
1. Positive Net Earnings
If a country's exports are higher in value than its imports, it will have a positive net earnings. This means that the country is exporting more goods and services than it is importing, resulting in a surplus in its trade balance. This surplus indicates that the country is earning more income from its exports, which contributes positively to the overall economy.
2. Negative Net Earnings
On the other hand, if a country's imports exceed its exports in value, it will have a negative net earnings. This indicates a trade deficit, where the country is importing more goods and services than it is exporting. In this case, the country is spending more on imports, which can have a negative impact on its overall economy.
3. Zero Net Earnings
When a country's exports and imports are of equal value, it will have a zero net earnings. This situation is known as a trade balance equilibrium, where the value of exports matches the value of imports. While this may not contribute to net earnings, it signifies that the country is maintaining a balanced trade relationship with its trading partners.
Conclusion
In conclusion, the correct statement is option 'D' - all of them. The net earnings for a country can be positive, negative, or zero depending on the value of exports and imports. A positive net earnings indicates a trade surplus, a negative net earnings indicates a trade deficit, and a zero net earnings indicates a trade balance equilibrium. These different scenarios have varying impacts on a country's overall economy.
To understand the net earnings for a country, we need to consider its trade balance, which is the difference between its exports and imports. The net earnings can be positive, negative, or zero depending on the value of exports and imports.
1. Positive Net Earnings
If a country's exports are higher in value than its imports, it will have a positive net earnings. This means that the country is exporting more goods and services than it is importing, resulting in a surplus in its trade balance. This surplus indicates that the country is earning more income from its exports, which contributes positively to the overall economy.
2. Negative Net Earnings
On the other hand, if a country's imports exceed its exports in value, it will have a negative net earnings. This indicates a trade deficit, where the country is importing more goods and services than it is exporting. In this case, the country is spending more on imports, which can have a negative impact on its overall economy.
3. Zero Net Earnings
When a country's exports and imports are of equal value, it will have a zero net earnings. This situation is known as a trade balance equilibrium, where the value of exports matches the value of imports. While this may not contribute to net earnings, it signifies that the country is maintaining a balanced trade relationship with its trading partners.
Conclusion
In conclusion, the correct statement is option 'D' - all of them. The net earnings for a country can be positive, negative, or zero depending on the value of exports and imports. A positive net earnings indicates a trade surplus, a negative net earnings indicates a trade deficit, and a zero net earnings indicates a trade balance equilibrium. These different scenarios have varying impacts on a country's overall economy.
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Net earning for the country which may be1. Positive - if we have exported more in value terms than imported2. Negative - If imports exceed exports in value terms3. Zero - If exports and imports were of the same valueWhich of the statement/statements is/are correct?a) 1 and 2 Onlyb) 2 and 3 Onlyc) 1 and 3 Onlyd) All of themCorrect answer is option 'D'. Can you explain this answer?
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