If USExports Are $150 Billion and U

question 134

Multiple Choice

If U.S.exports are $150 billion and U.S.imports are $100 billion,which of the following is correct?

• A)The U.S.has a trade surplus of $100 billion.
• B)The U.S.has a trade surplus of $50 billion.
• C)The U.S.has a trade deficit of $100 billion.
• D)The U.S.has a trade deficit of $50 billion.

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to entry or exit, and perfect information among buyers and sellers.

Marginal Cost

It refers to the cost change associated with producing an extra unit of a good or service, important in economic decision-making.

Fixed Cost

Costs that do not vary with the level of output, such as rent or salaries.

Variable Costs

Expenses that directly fluctuate in relation to the volume of production or output.