Which of the Following Statements About the United States Was

question 1

Multiple Choice

Which of the following statements about the United States was true as of 2007?

• A)It was the world's largest exporter.
• B)It had the world's largest deficit in its current account.
• C)It had the world's largest surplus in its current account.
• D)None of the above are true.

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Definitions:

Income Elasticity

A measure of how the demand for a good or service changes in response to changes in consumer income.

Homothetic Preferences

A situation in consumer theory where a consumer's preference structure can be represented by a utility function that is proportionally scalable.

Engel Curve

A graphical representation that shows the relationship between income and the demand for a good or service, keeping all other factors constant.

Utility Function

A mathematical representation of how a consumer ranks different baskets of goods according to their level of satisfaction.