If the United States exports $100 worth of diamonds to the Kingdom of Mocha and imports $80 worth of bows and arrows,it has a(n)
A) unfavorable balance of trade.
B) trade deficit.
C) trade surplus.
D) negative cash flow.
E) export slide.

Question

Quizplus · Accepted Answer

A trade surplus occurs when a country exports more than it imports, resulting in a positive balance of trade. In this case, the U.S. exports $100 and imports $80, leading to a $20 trade surplus.

If the United States Exports $100 Worth of Diamonds to the Kingdom