In Econland Exports Equal 25% of Total Output, While Imports

question 69

Multiple Choice

In Econland exports equal 25% of total output, while imports equal 20% of total output. Econland has:

• A) a budget surplus.
• B) a budget deficit.
• C) a trade surplus.
• D) a trade deficit.

---

Definitions:

Substituting a New Contract

Replacing an existing contract with a new one, which extinguishes the obligations under the original contract.

Mutual Consideration

In contract law, mutual consideration is the exchange of value or promises between parties that is a requisite for the formation of a binding contract.

Past-due Undisputed Debt

A debt that is acknowledged by the debtor but has not been paid by the agreed-upon due date.

Promisor

An entity or individual who makes a promise to perform a certain action or duty within a contract.