What Occurs When the Value of a Country's Exports Exceeds

question 280

Multiple Choice

What occurs when the value of a country's exports exceeds the value of its imports?

• A) a trade deficit
• B) a trade surplus
• C) a payment imbalance
• D) a capital surplus

---

Definitions:

Used Cars

Pre-owned vehicles that have been previously registered and utilized by one or more retail owners.

Lemon Laws

Statutes designed to protect consumers from purchasing defective vehicles that fail to meet quality and performance standards.

Negative Externalities

Unintended and adverse side effects suffered by third parties or the environment as a result of economic activities.

Direct Controls

Government policies that directly constrain activities that generate negative externalities. Examples include maximum emissions limits for factory smokestacks and laws mandating the proper disposal of toxic wastes.