Which of the Following Is Correct

question 245

Multiple Choice

Which of the following is correct?

• A)U.S. exports as a percentage of GDP have more than doubled since 1950. The U.S. currently has a trade surplus.
• B)U.S. exports as a percentage of GDP have more than doubled since 1950. The U.S. currently has a trade deficit.
• C)U.S. exports as a percentage of GDP have increased, but have not nearly doubled since 1950. The U.S. currently has a trade surplus.
• D)U.S. exports as a percentage of GDP have increased, but have not nearly doubled since 1950. The U.S. currently has a trade deficit.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market stability.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price.

Normal Good

A good for which demand increases as consumer income rises, holding all other factors constant.

Consumer Tastes

Preferences and inclinations of consumers that influence their purchasing behavior and choice of products.