The condition that results when the value of a nation's exports is greater than the value of its imports is called ________.

Question

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A trade surplus occurs when a country exports more goods and services than it imports. This can result in a positive balance of trade and increase in foreign currency reserves. Choice A, trade deficit, is the opposite where the value of imports is more than the value of exports. Mercantilism (Choice B) is an economic theory that states that a country should aim to have a trade surplus to accumulate wealth and power. Absolute advantage (Choice D) is the ability of a country to produce a good or service more efficiently than another country.

The Condition That Results When the Value of a Nation's