The Accompanying Table Contains Hypothetical Data for the U

question 32

Multiple Choice

$$\begin{array} { | l | r | } \hline \text { U.S. goods exports } & + \$ 390 \\\hline \text { U.S. goods imports } & - 498 \\\hline \text { U.S. service exports } & + 133 \\\hline \text { U.S. service imports } & - 107 \\\hline \text { Net investment income } & + 12 \\\hline \text { Net transfers } & - 22 \\\hline \text { Capital account } & - 5 \\\hline \text { Foreign purchases of U.S. assets } & + 156 \\\hline \text { U.S. purchases of foreign assets } & - 59 \\\hline\end{array}$$ The accompanying table contains hypothetical data for the U.S. balance of payments in a year. All ?gures are in billions of dollars. The balance on the current account was a

• A) $51 billion surplus.
• B) $92 billion de?cit.
• C) $22 billion surplus.
• D) $82 billion de?cit.

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Definitions:

Equilibrium Level

The state of balance where demand equals supply in a market, resulting in an optimal distribution of resources without excess supply or demand.

Price Ceiling

A maximum legal price above which a product cannot be sold; to have an impact, a price ceiling must be set below the equilibrium price.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.

Shortage

A market condition characterized by the demand for a product exceeding its supply, often leading to increased prices.