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:

Retained Earnings

The portion of net income that is retained by the company rather than distributed to shareholders as dividends, representing the cumulative earnings of the company over time.

Common Stock

Equity ownership in a corporation, with rights to vote on corporate matters and share in the profits through dividends.

Net Income

The total profit of a company after all expenses, taxes, and deductions have been subtracted from total revenue.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.