If a Country's Exports Totalled $8 Billion and Its Imports

question 192

True/False

If a country's exports totalled $8 billion and its imports totalled $12 billion, then the country's balance of trade would be a surplus of $4 billion.

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Definitions:

Shut Down

A short-term decision by a firm to cease operations when variable costs exceed revenues, typically in a perfect competition scenario.

Short Run

A time period in economics during which at least one factor of production is fixed, limiting the ability of the economy or firm to fully adjust.

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to any change.

Shut Down

In economics, a short-run decision not to produce anything during a specific period because of current market conditions.