Question

Net Exports are affected by which of the following?

i. Tastes of consumers.
ii. Prices of goods at home and abroad.
iii. The incomes of consumers at home and abroad.
iv. Government policies toward international trade.
a.only i, ii, and iii
b.only ii, iii, and iv
c.only i, ii, and iv
d.all four

Answer 1

Net Exports are affected by consumer tastes, prices of goods, incomes of consumers, and government policies toward international trade. Hence, the correct answer is option D.

Step-by-step explanation:

Net Exports are affected by a combination of factors including the tastes of consumers, the prices of goods at home and abroad, the incomes of consumers at home and abroad, and government policies toward international trade.

These factors influence the level of demand for a nation's exports and the quantity of a nation's imports. For example, changes in consumer tastes can impact which products are in demand internationally, while changes in prices can affect the competitiveness of exports. Government policies, such as tariffs or quotas, can also have a significant impact on net exports.