Answers 25-26 Economics DLOC – 3054111 Unit Test — Cumulative examQuestion 13

13

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Unit Test — Cumulative exam

Question 13 • 25-26 Economics DLOC – 3054111

Which describes the difference between a trade surplus and a trade deficit?

Answer

A

A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports.

B

A trade surplus is when a country imports more than it exports, while a trade deficit happens when exports exceed imports.

C

A trade surplus is when a country produces more than it consumes, while a trade deficit happens when consumption exceeds production.

D

A trade deficit is when a country loses money on products it makes, while a trade surplus happens when production leads to profits.

Explanation

A trade surplus occurs when the value of a country’s exports is greater than the value of its imports. A trade deficit is the reverse: imports are greater than exports. Therefore, choice A correctly describes the difference.

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