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
You might also like to view...
Which of the following makes the Consumer Price Index a less accurate measure of the cost of living?
i. The monthly price survey conducted to collect information about prices is very unreliable. ii. The existence of a new goods bias in the calculation of the CPI iii. The existence of a quality change bias in the calculation of the CPI A) i, ii, and iii B) i and ii C) i only D) ii only E) ii and iii
The national concentration ratio
A) underestimates concentration for both the newspaper and the automobile industries. B) overestimates concentration for both the newspaper and the automobile industries. C) underestimates concentration for the newspaper industry and overestimates it for the automobile industry. D) overestimates concentration for the newspaper industry and underestimates it for the automobile industry.