Which One of the Following Is Not a Major Factor

question 101

Multiple Choice

Which one of the following is not a major factor that contributed to large trade deficits in the United States in the period 2002-2007?

• A) A declining saving rate coupled with a rising investment rate in the U.S.
• B) A U.S. economy growing faster than its trading partners
• C) Large trade deficits with OPEC economies
• D) Flexible exchange rate between the U.S. dollar and the Chinese yuan

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Definitions:

Range of Output

The spectrum of production output levels within a manufacturing or production process, from minimum to maximum, based on capacity, demand, and resource availability.

Diseconomies of Scale

Phenomena that occur when a company or business grows so large that the costs per unit increase, leading to inefficiency and increased per-unit costs.

Large Business

A corporation or conglomerate with extensive operations, high revenue, and a significant number of employees.