Question : What is a trade surplus?
Option 1: When a country exports more than it imports
Option 2: When a country imports more than it exports
Option 3: When a country has no trade
Option 4: When a country has a deficit in trade
Correct Answer: When a country exports more than it imports
Solution : The correct answer is (a) When a country exports more than it imports.
A trade surplus occurs when a country's exports exceed its imports. In other words, it means that a country is selling more goods and services to other countries than it is buying from them. This results in a positive balance of trade.
When a country has a trade surplus, it means that it is earning more from exports, which include goods, services, and commodities, than it is spending on imports. The difference between the value of exports and imports represents the trade surplus.
A trade surplus can be influenced by factors such as the competitiveness of domestic industries, exchange rates, trade policies, and global economic conditions. It can have economic implications, including an increase in foreign currency reserves, currency appreciation, and potential impacts on domestic industries.
Question : What is a trade deficit?
Option 1: When a country imports more than it exports
Option 2: When a country exports more than it imports
Option 4: When a country has a surplus in trade
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
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
Question : When a country's exports of goods and services exceed its imports, it is said to have a:
Option 1: Balance of payments surplus
Option 2: Balance of payments deficit
Option 3: Trade deficit
Option 4: Trade surplus
Question : What is the difference between a surplus and a deficit?
Option 1: A surplus is when the government spends more money than it takes in, while a deficit is when the government takes in more money than it spends
Option 2: A surplus is when the government takes in more money than it spends, while a deficit is when the government spends more money than it takes in
Option 3: A surplus is when the government has no debt, while a deficit is when the government has debt
Option 4: A surplus is when the government has debt, while a deficit is when the government has no debt
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