A Trade Surplus Occurs When

question 130

Multiple Choice

A trade surplus occurs when:

• A)imports exceed exports, so that a country is consuming more than it is producing.
• B)imports exceed exports, so that a country is producing more than it is consuming.
• C)exports exceed imports, so that a country is producing more than it is consuming.
• D)exports exceed imports, so that a country is consuming more than it is producing.

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Definitions:

Government

A system or group of people governing an organized community, often a state.

Maximum Price

A price ceiling set by a governing body meant to control the maximum price that can be charged for a product or service, often implemented to prevent prices from reaching levels considered too high for consumers to afford.

Equilibrium Price

The price at which the quantity of a good supplied is equal to the quantity of the good demanded.

Price Ceiling

A legal maximum price that can be charged for a good or service, intended to protect consumers.