The fact that the United States has a trade deficit means that:
A. foreign countries can have comparative advantages in all goods.
B. foreign countries can have comparative advantages in more goods compared to the United States.
C. the United States is producing more than it is consuming.
D. the United States is lending more to foreign countries than it is borrowing from foreign countries.
Answer: B
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East Asian economies have grown
A) rapidly because of high saving rates. B) rapidly despite a lack of property rights. C) slowly because of a lack of property rights. D) slowly because of low saving rates. E) rapidly because they virtually eliminated international trade.
Scott used $4,000,000 from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . His economic profits is:
a. $300,000 b. $100,000 c. -$100,000 d. -$200,000
When a price ceiling is imposed below the equilibrium price of a commodity,
a. quantity supplied will be greater than quantity demanded for the good. b. the problem of scarcity will be solved. c. a shortage of the good will develop. d. a surplus of the good will develop.
What is an effect of a tariff on steel imports to the United States?
A. U.S. consumers benefit from the increased production of better-quality steel in the United States. B. U.S. steel workers lose because the increase in the price of steel results in decreased production and unemployment in the steel industry. C. Foreign consumers benefit from the effective world-wide increase in the price of steel. D. U.S. steel producers benefit as the product's price rises and domestic production increases.