Which of the Following Statements Correctly Characterizes the Colonial Commodity

question 35

Multiple Choice

Which of the following statements correctly characterizes the colonial commodity trade deficit?

• A) The Middle colonies had the largest commodity trade deficit.
• B) The Southern colonies exported more to Great Britain & Ireland than they imported.
• C) The colonies experienced commodity trade deficits not only in their trade with England, but also in trade with Southern Europe and Africa.
• D) The colonies had a commodity trade deficit with Great Britain, but a commodity trade surplus once all trades were taken into account.

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Definitions:

Common Resources

Resources that are available to all members of a society but have limited availability, leading to potential overuse.

Free-rider Problem

The free-rider problem occurs when individuals consume a good without paying for it, under the assumption that others will cover the cost, typically in the context of public goods.

Nonpayers

Individuals who benefit from goods, services, or resources without contributing to their production or cost, often in the context of public goods.

Market Failure

A situation where the allocation of goods and services is not efficient, often leading to a net social welfare loss.