Using the expenditures approach to national income accounting, which of the foll
ID: 1133777 • Letter: U
Question
Using the expenditures approach to national income accounting, which of the following would be counted as
net exportsnet exports?
A.
The U.S. government pays Social Security to a retired U.S. citizen living in Hong Kong.The U.S. government pays Social Security to a retired U.S. citizen living in Hong Kong.
B.
Microsoft sells software to British companies.Microsoft sells software to British companies.
C.
Upper A French company produces wine but does not sell it this year.A French company produces wine but does not sell it this year.
D.
Upper A U.S. citizen buys stock in Shell Oil comma a Dutch company.
Explanation / Answer
Answer : The correct option is B.
In expenditure approach of accounting national income,
Net export = Exports of goods and services - Imports of goods and services
According to given options, only option B will be counted in net export as microsoft exports softwares. But as other options are not related to net export, hence except option B other options will not be counted in net export.
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