If a country's exports totalled $8 billion and its imports totalled $12 billion, then the country's balance of trade would be a surplus of $4 billion.

Question

Quizplus · Accepted Answer

The balance of trade is calculated by subtracting imports from exports, so in this case, the balance of trade would be a deficit of $4 billion ($8 billion - $12 billion = -$4 billion). Therefore, the statement is false.

If a Country's Exports Totalled $8 Billion and Its Imports