Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The country exports more than it imports
B
The country imports more than it exports
C
The country has no trade at all
D
The country has equal imports and exports
Understanding the Answer
Let's break down why this is correct
Answer
A trade surplus means that a country is selling more goods and services to other countries than it is buying from them. This situation shows that the country is earning more money from exports than it spends on imports. A positive trade balance can suggest that the country's economy is strong and competitive in the global market. For example, if a country exports cars worth $100 million but only imports cars worth $70 million, it has a trade surplus of $30 million. This surplus can help improve the country's overall economic health by increasing jobs and boosting production.
Detailed Explanation
A trade surplus means a country sells more goods to other countries than it buys from them. Other options are incorrect because This option suggests the country buys more than it sells; This option says the country has no trade at all.
Key Concepts
trade balance
Topic
Current Account and Trade Balance
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.