Scenario: Happyland

Happyland is a country characterized by beautiful beaches, vast natural resources, and a highly skilled labor force. Happyland is now encouraging foreign direct investment flows. The country has been exporting textiles, computer hardware, and software programs. The net result of the trade is that Happyland exports far more goods and services and receives more income from abroad than it imports and pays abroad.

Transactions involving the export of Happyland's textile and computer products are included in its $\_\_\_\_\_\_\_\_$ account.

Group of answer choices

Services

Capital

Merchandise

income payments