When Comparing the Ratio of Imports or Exports to GDP,the

question 116

Multiple Choice

When comparing the ratio of imports or exports to GDP,the United States,relative to other countries,has:

• A) Higher ratios for both imports and exports.
• B) A higher ratio for imports but a lower ratio for exports.
• C) A lower ratio for imports but a higher ratio for exports.
• D) Lower ratios for both imports and exports.

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Definitions:

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and more.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in no shortage or surplus.

Equilibrium Quantity

The quantity of goods or services sold and bought at the equilibrium price, where market supply equals market demand.

Demand Rises

A situation where the quantity of a good or service that consumers are willing and able to buy increases.