If a Country Had a Trade Surplus of $100 Billion

question 91

Multiple Choice

If a country had a trade surplus of $100 billion and then its exports rose by $40 billion and its imports rose by $30 billion,its net exports would now be

• A)$110 billion
• B)$90 billion.
• C)$70 billion.
• D)$60 billion.

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Definitions:

Good

An item or service that fulfills a consumer's want or need, which can be tangible, like a car, or intangible, like a service provided by a dentist.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefits received by all participants.

Good

A material item or service that fulfills wants or needs, often exchanged in economic transactions.

Equilibrium Price

The market price at which the quantity of a good or service demanded equals the quantity supplied.