U.S. exports to China have been rapidly increasing but not fast enough to offset the imports from China. This means that the United States has a(n)
A) domestic gain.
B) trade surplus.
C) trade deficit.
D) absolute advantage.
E) comparative advantage.

Question

Quizplus · Accepted Answer

U.S. exports to China have been rapidly increasing but not fast enough to offset the imports from China, meaning that the United States has a trade deficit. A trade deficit is defined as a nation's negative balance of trade, which exists when that country imports more products than it exports.

US Exports to China Have Been Rapidly Increasing but Not