If a country's imports are greater than its exports,what is the country said to have?
A) a trade surplus
B) a trade deficit
C) a comparative advantage
D) an absolute advantage

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country's imports exceed its exports, indicating that it is spending more on foreign goods and services than it is earning through exports. A trade surplus would be the opposite - when a country's exports exceed its imports. Comparative advantage and absolute advantage refer to a country's ability to produce goods and services at a lower opportunity cost or with higher levels of productivity than another country - they are not related to trade deficits or surpluses.

If a Country's Imports Are Greater Than Its Exports,what Is