A Trade Imbalance Occurs When

question 90

Multiple Choice

A trade imbalance occurs when:

• A)exports from and imports to a country suddenly decline.
• B)the quantity of imports equals the quantity of exports, but are large relative to total output.
• C)a country does not import or export any goods or services.
• D)the quantity of a country's exports differs significantly from the quantity of imports.

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Definitions:

Physical Capital

Assets that are tangible, such as buildings, machinery, and equipment, which are used in the production of other goods and services.

Manufactured Resources

Goods that have been processed or created through manufacturing, used in the production of other goods or services.

Derived Demand

The demand for a factor of production resulting from the demand for the final product it helps to produce.

Factor of Production

A rephrased definition would be the essential elements required for producing goods and services, encompassing land, labor, capital, and entrepreneurship.