Question : When a country's imports exceed its exports, it results in:
Option 1: A trade deficit
Option 2: A trade surplus
Option 3: A balance of payments surplus
Option 4: A balance of payments deficit
Correct Answer: A trade deficit
Solution : The correct answer is (a) A trade deficit.
A trade deficit occurs when the value of a country's imports of goods and services exceeds the value of its exports. In other words, it represents a negative balance of trade. It indicates that the country is buying more goods and services from foreign sources than it is selling to foreign markets.
Question : When a country's imports exceed its exports, it is said to have a:
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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