Question : When a country's imports exceed its exports, it is said to have a:
Option 1: Trade deficit
Option 2: Trade surplus
Option 3: Balance of payments surplus
Option 4: Balance of payments deficit
Correct Answer: Trade deficit
Solution : The correct answer is a) Trade deficit.
When a country's imports exceed its exports, it is said to have a trade deficit. A trade deficit occurs when the value of goods and services a country imports exceeds the value of its exports. This means that the country is buying more from foreign countries than it is selling to them.
Question : When a country's imports exceed its exports, it results in:
Question : When a country's exports of goods and services exceed its imports, it is said to have a:
Question : ___________ is the difference between a country's exports and imports of goods and services.
Question : What is a trade surplus?
Question : What is a trade deficit?
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