The Balance of Trade Is the Value of a Nation's

question 16

Multiple Choice

The balance of trade is the value of a nation's ____________.

• A) goods and service exports times goods and service imports
• B) goods exports subtracted from goods imports
• C) goods imports subtracted from goods exports
• D) net goods imports plus net capital inflows

---

Definitions:

Burden of the Tax

The distribution of the financial impact of a tax between buyers and sellers in a market.

Deadweight Loss

An economic inefficiency resulting from the failure to achieve or the impossibility of achieving equilibrium in the market for a particular good or service.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that suppliers are willing to provide.

Tax Revenue

The earnings obtained by governments from tax collection.