Statement I: Until the Mid-1970s,our Imports and Exports Was a Relatively

question 128

Multiple Choice

Statement I: Until the mid-1970s,our imports and exports was a relatively small percentage of our domestic goods output.
Statement II: Our negative merchandise trade balance is about as large as our positive services trade balance.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Buyer Surplus

Buyer surplus is the difference between the maximum amount a consumer is willing to pay for a good or service and the actual amount paid.

Producer Surplus

The difference between the amount producers are willing to supply a good for and the actual amount they receive (or market price).

Minimum Price

The lowest possible price at which a product or service can be sold, often regulated by governments to protect producers or consumers.

Buyer Surplus

The difference between the highest price a consumer is willing to pay for a good or service and the actual price they pay.