Wichasha, an African country, exports barley and cotton worth $100 million to Illema, a European country, and it imports sugarcane worth $25 million from Illema. As such, the total value of Wichasha's exports is higher than the total value of its imports. This difference between the value of Wichasha's exports and imports is known as _____.

Question

Quizplus · Accepted Answer

The difference between the total value of exports and imports is known as the balance of trade. Choice A refers to a country's ability to produce a product at a lower opportunity cost than another country, while choice B refers to a broader measure of a country's economic transactions with the rest of the world. Choice C refers to a country's ability to produce a product more efficiently than another country.

Wichasha, an African Country, Exports Barley and Cotton Worth $100