A _____ Is an Inequality in Trade That Occurs When

question 19

Multiple Choice

A _____ is an inequality in trade that occurs when a country imports more from another country than it exports to the other country.

• A)trade surplus
• B)trade embargo
• C)trade deficit
• D)balance of trade
• E)trade war

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Definitions:

Zero-profit Equilibrium

A situation in a perfectly competitive market where firms just cover their costs, leaving no surplus for economic profit.

Consumer Preference

The subjective tastes and preferences that influence buyers' choices of goods and services.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a balance in the market.