When the UK Is Running a Balance of Payments Deficit

question 59

Multiple Choice

When the UK is running a balance of payments deficit, this means that:

• A) the UK is exporting high-productivity capital items.
• B) the average wage level in the UK is very high.
• C) the UK is importing more goods and services than it is exporting overseas.
• D) the government has to take policies that will shift the aggregate supply curve to the left.

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Definitions:

Demand Curve

A visual depiction highlighting how the cost of a good influences the quantity that buyers seek.

Price

The amount of money required to purchase a good or service; it acts as a signal between sellers and buyers.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers.