The USHas a Balance of Trade Deficit When Its

question 93

Multiple Choice

The U.S.has a balance of trade deficit when its:

• A) Merchandise exports exceed its merchandise imports
• B) Merchandise imports exceed its merchandise exports
• C) Goods and services exports exceed its goods and services imports
• D) Goods and services imports exceed its goods and services exports

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Definitions:

Marginal Revenue

The boost in income from the sale of an additional unit of a product or service.

Demand

The desire and willingness of consumers to purchase a particular good or service at various prices.

MC > MR

A condition where the marginal cost of producing an additional unit is greater than the marginal revenue earned from selling it, suggesting a decrease in production might increase profit.

Profit

The financial gain realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.