Which of the Following Statements Is False

question 44

Multiple Choice

Which of the following statements is false?

• A) When the value of a country's imports is greater than the value of its exports,the country's net exports will be a positive value.
• B) A country is running a trade deficit when the value of its imports is greater than the value of its exports.
• C) A country is running a trade surplus when the value of its exports is greater than the value of its imports.
• D) Net exports are sometimes referred to as the balance of trade.

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold; determined by supply and demand.

Sugar Quotas

Government-imposed limits on the quantity of sugar that can be imported or produced domestically, often used to protect domestic production and control prices.

Quota Limits

Refers to government-imposed restrictions on the quantity or monetary value of goods that can be imported or exported over a specific period.

Market Equilibrium

A situation in which market supply equals market demand, and prices stabilize.