A country sells less to people overseas than it buys from them. Which of the following correctly reflects this situation?
A)The country has a balanced trade.
B)The country has a trade surplus.
C)The country has a trade deficit.
D)There is not enough information to answer the question.

Question

Quizplus · Accepted Answer

When a country sells less to people overseas than it buys from them, it is referred to as a trade deficit. This means that the country is importing more than it is exporting, resulting in a negative balance of trade.

A Country Sells Less to People Overseas Than It Buys