The Difference Between the Total Value of a Country's Exports

question 116

Multiple Choice

The difference between the total value of a country's exports and the total value of its imports is defined as the country's:

• A) trade status.
• B) trade balance.
• C) trade deficit.
• D) bilateral trade balance.

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Definitions:

Average Product

The ratio of total product to the amount of input used, determined by dividing the overall output by the input quantity.

Average Product

The average amount of output produced per unit of a specific input, like labor or capital, over a certain period.

Diminishing Returns

The principle stating that if one factor of production is increased while others remain constant, the overall returns will initially increase but will eventually decrease after a certain point.