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:

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.

Competitive Market Economy

An economic system where numerous buyers and sellers interact in the marketplace, with competition determining the price and quantity of goods and services.

Self-interest

The pursuit of personal gain or advantage, whether economic, psychological, or physical.

Command System

A method of organizing an economy in which property resources are publicly owned and government uses central economic planning to direct and coordinate economic activities; socialism; communism. Compare with market system.