Which of the Following Statements About Trade Is True

question 82

Multiple Choice

Which of the following statements about trade is true?

• A) On a global scale,exports are greater than imports.
• B) The United States has a trade deficit with all of the countries it trades with.
• C) The United States typically has a modest trade surplus in services.
• D) The United States has a high export ratio.

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Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Externalities

Costs or benefits that affect a party who did not choose to incur that cost or benefit.

Consumer Surplus

The difference in the total amount expected to be paid by consumers for a good or service and the actual payment made.

Willingness to Pay

Willingness to Pay is the maximum amount an individual or organization is ready to spend to procure a product or service, reflecting the value they attach to it.