Questions: Exports minus Imports is equal to All of these are correct Trade balance Net Exports Net Capital Outflow Net Foreign Investment

Exports minus Imports is equal to
All of these are correct
Trade balance
Net Exports
Net Capital Outflow
Net Foreign Investment
Transcript text: Exports minus Imports is equal to All of these are correct Trade balance Net Exports Net Capital Outflow Net Foreign Investment
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Solution

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The answer is the second one: Trade balance.

Explanation for each option:

  1. All of these are correct: This option is incorrect because not all the terms listed are equivalent to "Exports minus Imports."

  2. Trade balance: This is the correct answer. The trade balance is defined as the difference between a country's exports and imports. If exports exceed imports, there is a trade surplus; if imports exceed exports, there is a trade deficit.

  3. Net Exports: This is also correct in the context of "Exports minus Imports." However, since the question asks for a single answer, "Trade balance" is the more commonly used term in this context.

  4. Net Capital Outflow: This is incorrect. Net Capital Outflow refers to the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners. It is not directly equivalent to "Exports minus Imports."

  5. Net Foreign Investment: This is incorrect. Net Foreign Investment is another term for Net Capital Outflow and does not directly equate to "Exports minus Imports."

In summary, the term that directly represents "Exports minus Imports" is the Trade balance.

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