A ________ occurs when a country's exports exceed its imports.
A) trade deficit
B) trade surplus
C) budget surplus
D) fiscal deficit

Question

Quizplus · Accepted Answer

A trade surplus occurs when a country's exports exceed its imports, meaning that there is a positive balance of trade. This can lead to an increase in the country's currency value and can be a sign of a strong economy. Option A, a trade deficit, is the opposite situation where imports exceed exports. Option C, a budget surplus, refers to a situation where a government collects more revenue than it spends. Option D, a fiscal deficit, refers to a situation where a government spends more than it collects in revenue.

A ________ Occurs When a Country's Exports Exceed Its Imports