Scenario 9.1 In a Given Year, Country a Exported $12 Million Worth

question 33

Multiple Choice

Scenario 9.1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C, country B exported $4 million worth of goods to country A and $7 million worth of goods to country C, and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-According to Scenario 9.1, country B is running a ____ with country A and a ____ with country C.

• A) trade deficit; trade surplus
• B) trade surplus; trade surplus
• C) trade surplus; trade deficit
• D) trade deficit; trade deficit
• E) balanced trade; trade deficit

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Definitions:

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs.

Market Price

The price at which goods are bought and sold in a competitive marketplace, constantly influenced by supply and demand.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit costs and opportunity costs, indicating the firm's financial performance beyond breaking even.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by the forces of supply and demand.