Which of the Following Refers to the Situation When a Country's

question 11

Multiple Choice

Which of the following refers to the situation when a country's imports exceed its exports?

• A) Balance of payments
• B) Balance of trade
• C) Trade deficit
• D) Trade surplus
• E) Trade advantage

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Definitions:

Consumption

The action of using up a resource or goods and services being used by consumers.

Saving

The portion of income not spent on current consumption but reserved for future use.

Total Income

The aggregate amount of income received by an individual or household from all sources before taxes or deductions.

Utility Function

A mathematical representation of how a consumer derives satisfaction or utility from consuming various amounts of goods or services.