Exports minus imports:
A) is termed net exports.
B) has been a small but positive number for the U.S. economy since 1980.
C) has created more of an injection into, than a leakage from, the U.S. economy since 1980.
D) has little effect on the economy because it involves dealings with other countries.

Question

Quizplus · Accepted Answer

Net exports are defined as the difference between a country's total value of exports and total value of imports. If a country exports more than it imports, it has a trade surplus, and if it imports more than it exports, it has a trade deficit. This concept is crucial in understanding a country's economic balance with the rest of the world. Choices B, C, and D are incorrect because the U.S. has generally run a trade deficit since the 1980s, meaning it has imported more than it exported, which contradicts the statements made in those choices. Additionally, international trade has significant effects on an economy, contrary to what is suggested in choice D.

Exports Minus Imports