Which of the following refers to the situation when a country's imports exceed its exports?
A) Balance of payments
B) Balance of trade
C) Trade deficit
D) Trade surplus
E) Trade advantage

Question

Quizplus · Accepted Answer

A trade deficit occurs when a country imports more goods and services than it exports, resulting in a negative balance of trade. The balance of payments refers to all transactions between a country and other countries, including both imports and exports, as well as investments, aid, and other financial flows. A trade surplus occurs when a country exports more goods and services than it imports. A trade advantage is not a commonly used term in international trade economics.

Which of the Following Refers to the Situation When a Country's