Which of the Following Is True About the Trade Imbalance

question 17

Multiple Choice

Which of the following is true about the trade imbalance in the United States?

• A)The United States has not had a trade surplus since 1975.
• B)Over the past decade,the U.S.trade deficit has exceeded $300 billion every year.
• C)The United States has the largest trade deficit of the top three economic centers.
• D)All of these are true: The United States has not had a trade surplus since 1975; over the past decade,the U.S.trade deficit has exceeded $300 billion every year; and the United States has the largest trade deficit of the top three economic centers.
• E)None of these answers is correct.

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Definitions:

Collusion

An agreement between two or more parties, often in a secretive manner, to limit open competition by deceiving or defrauding others of their legal rights, or to obtain an objective forbidden by law, typically by defrauding or gaining an unfair market advantage.

Homogeneous Product

A product or service that is perceived by consumers as identical in all essential features and quality to a product or service offered by competing companies.

Differentiated Product

A product that is distinct in some way from other products in the market, often through quality, design, or features, allowing it to stand out to consumers.

Collusion Methods

Strategies used by firms to set prices or output levels by agreement rather than through competition, often to maximize profits illegally or unethically.