A Trade Surplus Occurs When

question 53

Multiple Choice

A trade surplus occurs when:

• A)exports exceed imports.
• B)imports exceed exports.
• C)tariffs exceed quotas.
• D)quotas exceed tariffs.

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Definitions:

Interest

The charge for borrowing money, typically expressed as an annual percentage rate, or the income earned from investing funds.

Sunk Cost

A sunk cost refers to money already spent and permanently lost, which cannot be recovered and should not impact future business decisions.

Externality

A cost or benefit that affects a party who did not choose to incur that cost or benefit, often seen in environmental and public goods scenarios.

After-tax Proceeds

The net amount received after taxes are deducted from the gross proceeds of a sale or transaction.