A Trade Deficit Occurs When ______

question 105

Multiple Choice

A trade deficit occurs when ______.

• A) imports exceed exports
• B) foreign-aid payments exceed exports
• C) imports are sold at low profits
• D) there is a net flow of money into a country

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Definitions:

Lorenz Curve

Data plotted to show the percentage of income enjoyed by each percentage of households, ranked according to their income.

Perfect Income Equality

A theoretical economic condition where all individuals or households earn exactly the same income, leading to absolute equity in income distribution.

Incidence Of Poverty

The proportion or frequency of individuals or families whose income falls below the poverty line, making it difficult to afford basic life necessities.

Children

Young human beings who are not yet fully grown, often considered in the context of family, education, and development.