The value of imported items to Australia equals $1 trillion,but the value of exported items from Australia equals $750 billion.Australia has a $250 billion _____.
A) trade deficit
B) trade surplus
C) absolute advantage
D) comparative disadvantage

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country's imports exceed its exports, resulting in a negative balance of trade. In this case, Australia's imports ($1 trillion) exceed its exports ($750 billion) by $250 billion, indicating a trade deficit.

The Value of Imported Items to Australia Equals $1 Trillion,but