Which of the following is true of trade surplus?

Question

Quizplus · Accepted Answer

A trade surplus occurs when a country exports more goods and services than it imports, resulting in a positive balance of trade. This is generally seen as a favorable condition for a country as it can lead to increased employment, economic growth, and foreign investment. Option A is incorrect because a negative balance is associated with a trade deficit. Option C is incorrect because trade gap is another term for trade deficit. Option D is incorrect because a trade surplus is generally considered a favorable condition. Option E is incorrect because a country with a trade surplus receives payments from other countries for its exports rather than making payments for imports.

Which of the Following Is True of Trade Surplus