The Overall U.S.balance of Payments

question 46

Multiple Choice

The overall U.S.balance of payments

• A)shows a deficit
• B)shows a surplus
• C)is the merchandise trade balance
• D)equals exports minus imports
• E)shows how deficits in one account are exactly offset by surpluses in other accounts

---

Definitions:

Economies of Scale

The reduction in per-unit cost as the volume of production increases, due to factors like specialization and bulk purchasing.

Oligopoly

A market structure characterized by a small number of large firms that dominate the market, leading to limited competition and the potential for collusion or price setting.

Government Regulation

The laws and rules put in place by the government to control the way businesses can operate, often with the aim of protecting consumers, workers, and the environment.

Herfindahl-Hirschman Index

A measure of the size of firms in relation to the industry and an indicator of the amount of competition among them.