Paper 2 · International Trade
In the expenditure measure of national income, net exports are
Aimports minus exports over the period
Bexports minus the tariffs charged on them
Cexports minus imports over the period
Dexports plus imports over the period
Explanation: Only the net contribution of trade belongs in national income: what foreigners bought from the country, less what the country bought from abroad, since imports were produced elsewhere. A programme that raises exports and substitutes imports raises net exports twice over.
Derived from ZIMSEC Economics 4050/2 Paper 2, June 2023, Q2