Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

Which is the correct pair from the above table?

 

 

Options:

a-i, b-ii, c-iv, d-iii

a-i, b-ii, c-iii, d-iv

a-i, b-iii, c-ii, d-iv

a-i, b-iv, c-iii, d-ii

Correct Answer:

a-i, b-ii, c-iii, d-iv

Explanation:

The domestic country may sell goods to the rest of the world. These are called exports. The economy may also buy goods from the rest of the world. These are called imports. Besides exports and imports, the rest of the world affects the domestic economy in other ways as well. Capital from foreign countries may flow into the domestic country (inward foreign direct investment), or the domestic country may be exporting capital to foreign countries (outward foreign direct investment).