If the United States Exports $100 Worth of Timber to Nigeria

question 106

Multiple Choice

If the United States exports $100 worth of timber to Nigeria and imports $80 worth of diamonds, the United States has a(n)

• A) unfavorable balance of trade.
• B) trade deficit.
• C) trade surplus.
• D) negative cash flow.
• E) export slide.

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Definitions:

Marginal Benefit

The extra pleasure or benefit gained from consuming an additional unit of a product or service.

Marginal Cost

The added financial burden of producing another unit of a product or service.

Efficient Price

The price at which the supply of a good matches its demand, leading to an optimal distribution of resources in a market.

Consumer Surplus

Consumer surplus represents the discrepancy between what consumers are prepared and capable of spending for a product or service and the actual amount they end up paying.