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
Correct Answer: Trade surplus
Solution : The correct answer is (d) Trade surplus
A trade surplus occurs when the value of a country's exports of goods and services is greater than the value of its imports. In other words, the country is selling more goods and services to other countries than it is buying from them. This leads to a positive balance of trade, and it is commonly referred to as a trade surplus.
A trade surplus can have various implications for an economy. It can contribute to an increase in foreign exchange reserves, provide domestic industries with a competitive advantage, and potentially stimulate economic growth. However,excessive trade surpluses can also raise concerns about trade imbalances, currency valuation, and potential trade conflicts with other countries.
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 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 : ___________ is the difference between a country's exports and imports of goods and services.
Option 3: Balance of payments
Option 4: Current account
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
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
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile