A Nation Has a Favorable Balance of Trade When _____

question 83

Multiple Choice

A nation has a favorable balance of trade when _____

• A) it has a surplus in its balance of payments.
• B) it has a deficit in its balance of payments.
• C) the value of its imports is greater than the value of its exports.
• D) merchandise exports exceed merchandise imports.
• E) it has high tariffs.

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Definitions:

Balance Sheet

A summarization capturing the value of assets, liabilities, and equity from shareholders of a company at an exact moment.

Income Statement

A financial statement that shows a company's revenues, expenses, and profit over a specific period.

Cost Principle

An accounting principle that requires assets, liabilities, equity, and expenses to be recorded at their original cost.

Market Value

The market's current rate for transactions involving the purchase or sale of an asset or service.