If U.S. Net Exports Are Positive

question 140

Multiple Choice

If U.S. net exports are positive,

• A) the United States borrows from other countries to pay for some of the goods the United States purchases from them.
• B) other countries borrow from the United States to pay for some of the goods they purchase from the United States.
• C) the United States sells some of the assets it owns in other countries to pay for some of the goods it sells to other countries.
• D) other countries make loans to the United States so that the United States can pay for some of the goods it purchases from other countries.

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Definitions:

Production Possibilities Frontier

A portrayal that shows the maximum achievable production levels for two goods, based on a selection of inputs involving resources and extra factors.

Production Possibilities Frontier

A diagram that represents the maximum production potential for two or more commodities, given certain inputs like resources and workforce.

Bowed Outward

Refers to the shape of the production possibility frontier that demonstrates increasing opportunity costs as resources are reallocated from producing one good to another.

Tennis Rackets

Sporting equipment consisting of a handled frame with a open hoop where a network of strings is stretched tightly.