If the United States Has a $300 Billion Trade Deficit

question 102

Multiple Choice

If the United States has a $300 billion trade deficit, then there must be:

• A)net capital inflows of $300 billion.
• B)net capital inflows of -$300 billion.
• C)no capital inflows or capital outflows.
• D)net capital outflows of $300 billion.

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Definitions:

Economies of Scope

Cost advantages that a business achieves due to a variety of goods or services rather than specializing in a single product.

Multiproduct Cost Function

A Multiproduct Cost Function calculates the cost of producing different products within the same firm, taking into account the cost interactions between producing multiple products.

Economies of Scope

Cost advantages that a business experiences by producing a wider variety of products, as opposed to specializing in a single product or service.

Learning Curve

Graph relating amount of inputs needed by a firm to produce each unit of output to its cumulative output.