The balance of trade is the value of a nation's ____________.

Question

Quizplus · Accepted Answer

The balance of trade is the difference between a country's total value of exports of goods and services and its total value of imports of goods and services. This is expressed as a surplus or a deficit. Therefore, the correct formula for calculating the balance of trade is: goods exports minus goods imports (Option C). Option A is incorrect because it multiplies exports and imports together, rather than subtracting. Option B is incorrect because it only takes into account goods, not services. Option D is incorrect because it includes net capital inflows, which is not part of the balance of trade calculation.

The Balance of Trade Is the Value of a Nation's