Question

u.s. trade with china, 2014–2018
(in millions of u.s. dollars)

year	total exports	total imports	trade balance
2015	115,873.4	483,201.7	-367,328.3
2016	115,594.8	462,420.0	-346,825.2
2017	129,797.6	505,220.2	-375,422.6
2018	120,148.1	539,675.6	-419,527.4

source: u.s. census bureau

1. based on the chart, what is a result of the united states importing more than it

exports to china? e.4.1
a. the united states has a negative balance of trade with china.
b. the united states has an absolute advantage over china.
c. the united states has a comparative advantage over china.
d. the united states has a positive balance of trade with china.

1. why is it necessary to have a w-2 form when preparing your tax return? epf.ie.2.3

a. they highlight job performance which can reduce your tax rate.
b. they include passwords for tax preparation software.
c. these forms report income which needs to be used to file taxes.
d. they show how much you have donated to charities.

1. why might preparing taxes be different for people living in different states? epf.ie.2.3

a. everyone must file state taxes but depending on where you live, you may not
need to file federal taxes.
b. everyone must file federal taxes, but each state has different tax laws.
c. it’s not different. all states have the same tax laws.
d. state taxes are due january 1st but federal taxes are due april 15th.

Explanation:

Question 13

A negative trade balance occurs when imports exceed exports. The table shows the U.S. imports more than exports to China, so the trade balance (exports - imports) is negative. Option a states a negative balance, which matches. Option b (absolute advantage) and c (comparative advantage) relate to production efficiency, not trade balance. Option d (positive balance) is incorrect as imports > exports means negative.

A W - 2 form reports an employee's annual wages and the taxes withheld. When preparing a tax return, this income information is necessary. Option a is wrong as W - 2 doesn't relate to job performance or tax rate reduction. Option b is wrong as W - 2 has no tax software passwords. Option d is wrong as W - 2 doesn't show charitable donations. Option c correctly states W - 2 reports income for tax filing.

Federal tax laws are uniform, but each state has its own tax laws (e.g., income tax rates, deductions). Option a is wrong as everyone who meets criteria files federal taxes. Option c is wrong as states have different tax laws. Option d is wrong as tax due dates are not as stated (federal and most state taxes are due around April 15th, state tax due dates vary but not Jan 1st). Option b correctly says federal taxes are mandatory, but states have different laws.

Answer:

a. The United States has a negative balance of trade with China.

Question 14