The value of a country's exports during a particular year was $120,000 and the value of its imports was $85,000.Which of the following is true?
A) The country ran a trade deficit of $35,000 during that year.
B) The country ran a trade surplus of $35,000 during that year.
C) The country ran a budget surplus of $205,000 during that year.
D) The country ran a fiscal deficit of $205,000 during that year.

Question

Quizplus · Accepted Answer

A trade surplus occurs when a country's exports exceed its imports. In this case, the country exported $120,000 worth of goods and services and imported $85,000 worth, resulting in a trade surplus of $35,000.

The Value of a Country's Exports During a Particular Year