A country sells more to people overseas than it buys from them. Which of the following correctly identifies the effects of these transactions?
A)The country will have a trade surplus and positive net exports.
B)The country will have a trade surplus and negative net exports.
C)The country will have a trade deficit and positive net exports.
D)The country will have a trade deficit and negative net exports.

Question

Quizplus · Accepted Answer

If a country sells more to people overseas than it buys from them, it will have a trade surplus. This means that its exports exceed its imports, resulting in a positive net export balance. Therefore, choice A (the country will have a trade surplus and positive net exports) is the correct answer.

A Country Sells More to People Overseas Than It Buys