The fact that the United States has a trade deficit means that:
A) the United States is producing more than it is consuming.
B) foreign countries can have comparative advantages in all goods.
C) foreign countries can have comparative advantages in more goods compared to the United States.
D) the United States is lending more to foreign countries than it is borrowing from foreign countries.

Question

Quizplus · Accepted Answer

A trade deficit means the U.S. imports more than it exports, indicating that foreign countries may have comparative advantages in producing certain goods, leading to more imports.

The Fact That the United States Has a Trade Deficit