When a Country Exports More Than It Imports, It Has

question 9

Multiple Choice

When a country exports more than it imports, it has a(n)

• A) trade deficit.
• B) favourable balance of trade.
• C) unfavourable exchange rate.
• D) unfavourable balance of trade.
• E) unfavourable balance of payments.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price level, at a specific point in time.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at various prices during a specific time period.

Equilibrium

A state of balance in a system where supply equals demand, and there is no external force prompting change.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.