Over the Last Several Years, the United States Has Run

question 30

Multiple Choice

Over the last several years, the United States has run a ________ in the goods trade balance and a ________ in the services trade balance.

• A) surplus; deficit
• B) surplus; surplus
• C) deficit; deficit
• D) deficit; surplus

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Definitions:

Marginal Product

The addition to total output due to the use of one more unit of a variable input, keeping all other inputs constant.

Profit-maximizing

The process or strategy of adjusting production and prices to achieve the highest possible profit, taking into account costs and market demand.

Marginal Product

The additional output that results from using one more unit of a particular input, holding all other inputs constant.

Wage

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee, especially to manual or unskilled workers.