An article in the Wall Street Journal noted in 2021 that the US "foreign-trade gap expanded to the highest deficit since August 2006" The article also noted that the "services surplus was the lowest since August 2012 as borders remained closed and travelers stayed home"

Source: Harriet Torry, "U.S. Trade Deficit Widest Since 2006 in November," Wal/ Street Journal, January 7, 2021.

1. What did the article mean by the "foreign-trade" gap? Which measure of trade was the article likely referring to?

A. exports

B. imports

C. trade balance

D. tariffs

2.,Why would a low surplus in services contribute to a large US. foreign trade gap?

A. Because the U.S. typically has a service trade surplus If this surplus is low, it offsets a larger portion of the goods trade deficit, widening the overall U.S. foreign trade gap.

B. AlowUS services trade surplus adds to the larger U.S. goods trade deficit to increase the U.S. foreign trade surplus gap

C. Because the U.S. typically has a service trade surplus. If this surplus is low, it offsets a smaller portion of the goods trade deficit, widening the overall U.S. foreign trade gap.

D. A low US services trade surplus adds to the larger U.S. goods trade surplus to increase the U.S. foreign trade surplus gap.