Which of the Following Is True About the Trade Imbalance

question 17

Multiple Choice

Which of the following is true about the trade imbalance in the United States?

• A)The United States has not had a trade surplus since 1975.
• B)Over the past decade,the U.S.trade deficit has exceeded $300 billion every year.
• C)The United States has the largest trade deficit of the top three economic centers.
• D)All of these are true: The United States has not had a trade surplus since 1975; over the past decade,the U.S.trade deficit has exceeded $300 billion every year; and the United States has the largest trade deficit of the top three economic centers.
• E)None of these answers is correct.

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Definitions:

Modify

To change or alter something, often to improve it or to make it suitable for a different purpose.

Variable Selling Costs

Expenses that vary directly with the volume of production or sales, such as commissions or shipping charges.

Full Cost

The total cost incurred for producing a product or delivering a service, including both fixed and variable expenses.

Idle Capacity

The portion of a company's resources or production ability that is not being used in production but still incurs costs.