Asked by Erick Varela on Jun 13, 2024
Verified
If a country has a trade surplus of $40 billion, which of the following can be true?
A) The country's exports are $160 billion, and its imports are $120 billion.
B) The country's exports are $110 billion, and its imports are $150 billion.
C) The country's exports are $120 billion, and its imports are $140 billion.
D) The country's exports are $140 billion, and its imports are $40 billion.
Trade Surplus
The amount by which the value of a country's exports exceeds the cost of its imports.
Exports
Goods or services sold by one country to another, contributing to the selling country's gross domestic product.
Imports
Products or services imported into a country from abroad for the purpose of selling.
- Get to grips with the economic implications of trade surplus and trade deficit.
Verified Answer
FS
Fatmiah Saleh S AlMenhalyJun 14, 2024
Final Answer :
A
Explanation :
A trade surplus of $40 billion means the country's exports exceed its imports by $40 billion. In option A, exports of $160 billion minus imports of $120 billion equals a $40 billion surplus.
Learning Objectives
- Get to grips with the economic implications of trade surplus and trade deficit.