How Did Europe's Trade Balance with the Rest of the World

question 12

Multiple Choice

How did Europe's trade balance with the rest of the world change during the Industrial Revolution?

• A) It went from a surplus to a deficit as Europeans scrambled to buy large amounts of raw materials from overseas.
• B) It went from a surplus to a deficit as the European bourgeoisie purchased new luxury goods from Asia.
• C) It went from a deficit to a surplus as Europeans sold manufactured goods around the world.
• D) It went from a deficit to a surplus as Europeans extracted nearly all their raw materials domestically.

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Definitions:

Determinants Of Elasticity

Factors that influence the sensitivity of the quantity demanded or supplied of a good to price changes.

Availability Of Substitutes

The extent to which similar or alternative products and services are accessible to consumers, influencing their choices and market demand.

Linear Demand

An economic model where demand for a good or service changes proportionately with changes in price.

Unit Elastic

A situation in demand or supply where the elasticity is exactly one, indicating that a change in price results in a proportionate change in the quantity demanded or supplied.