When a nation's exports are less than its imports, it has a
A) trade surplus.
B) balanced trade.
C) trade shortage.
D) trade embargo.

Question

Quizplus · Accepted Answer

When a nation's exports are less than its imports, it is said to have a trade deficit, which is sometimes referred to colloquially as a trade shortage. This means the country is buying more goods and services from abroad than it is selling to foreign markets.

When a Nation's Exports Are Less Than Its Imports, It