If a country has a trade surplus of $40 billion, which of the following can be true?
A) The country's exports are $160 billion, and its imports are $120 billion.
B) The country's exports are $110 billion, and its imports are $150 billion.
C) The country's exports are $120 billion, and its imports are $140 billion.
D) The country's exports are $140 billion, and its imports are $40 billion.

Question

Quizplus · Accepted Answer

A trade surplus of $40 billion means the country's exports exceed its imports by $40 billion. In option A, exports of $160 billion minus imports of $120 billion equals a $40 billion surplus.

If a Country Has a Trade Surplus of $40 Billion