Which of the Following Reasons Best Explains Why the United

question 67

Multiple Choice

Which of the following reasons best explains why the United States is a net importer of crude oil and metals and a net exporter of farm crops?

• A)Differences in resource endowments
• B)Economies of scale
• C)Differences in tastes
• D)Import quota
• E)Import tariffs

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Definitions:

Relative Liquidity

A measure of the ease with which an asset can be converted into cash without affecting its market price, compared to other assets.

Music Store Business

A commercial establishment that sells musical instruments, sheet music, and/or recorded music.

Gross Method

An accounting method for recording purchases at the invoice's full amount without deducting any cash discounts.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overheads, payroll, taxation, and interest.