ECON_2105_10_MC

How is the trade balance calculated?

• Imports minus exports

• Exports minus imports

• Total exports divided by total imports

• Total imports divided by total exports

If a country's exports are $500 billion and its imports are $600 billion, what is the trade balance?

• $1.1 trillion deficit

• $1.1 trillion surplus

• $100 billion deficit

• $100 billion surplus

A country imports $200 million worth of goods and exports $250 million worth of goods. What is the trade balance, and is it a surplus or deficit?

• $450 million surplus

• $450 million deficit

• $50 million deficit

• $50 million surplus

What does the trade balance measure?

• The total value of a country's exports

• The difference between a country's exports and imports

• The total value of a country's imports

• The amount of foreign investment in a country

Which of the following is a component of the trade balance?

• Government spending

• Net exports

• Foreign direct investment

• Gross domestic product

If a country has exports worth $900 million and imports worth $700 million, what is its trade balance?

• $200 million surplus

• $200 million deficit

• $1.6 billion surplus

• $1.6 billion deficit

What is a trade deficit?

• When a country's trade balance is zero

• When a country's exports exceed its imports

• When a country's imports equal its exports

• When a country's imports exceed its exports

If Country A's exports are $300 million and its imports are $450 million, what is the trade balance?

• $150 million deficit

• $150 million surplus

• $750 million surplus

• $750 million deficit

What is the relationship between the trade balance and the current account balance?

• There is no relationship between the trade balance and the current account balance

• The trade balance is separate from the current account balance

• The trade balance is a mirror image of the current account balance

• The trade balance is part of the current account balance

If the trade balance is -$500 million, what does this indicate?

• The country has a trade surplus

• The country has a trade deficit

• The country has balanced trade

• The country has no trade activity