Which economic aim corresponds to achieving a balance where exports equal imports?

Study for the SQA National 5 Economics Exam. Engage with flashcards and multiple choice questions, each featuring hints and comprehensive explanations. Prepare confidently for your exam!

The balance of payments aim focuses on ensuring that the financial transactions between a country and the rest of the world, including exports and imports, are in equilibrium. When exports equal imports, it indicates that a country is trading at a balanced level without incurring deficits or surpluses in its international transactions.

This equilibrium is crucial as it helps maintain stability in a country's currency value and supports sustainable economic growth. When the balance of payments is managed well, it reflects a healthy economy that can adequately finance its external obligations without relying excessively on foreign borrowing or depleting its foreign reserves.

The other options represent different economic goals. A trade surplus aim would focus specifically on having exports exceed imports. Capital investment aim relates to investments in capital goods rather than trade balance. Inflation control aim is concerned with maintaining stable prices rather than the balance of trade. Thus, the balance of payments aim is the most relevant to the concept of aligning exports with imports.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy