Which of the Following Is True When a Country Is

question 53

Multiple Choice

Which of the following is true when a country is experiencing a trade surplus (NX > 0) ?

• A)demand for domestic goods is equal to the domestic demand for goods
• B)demand for domestic goods is greater than the domestic demand for goods
• C)demand for domestic goods is less than the domestic demand for goods
• D)a budget surplus exists

---

Definitions:

Firm's Demand

The total quantity of a product or service that a business anticipates consumers will purchase at various price levels.

Derived Demand

Demand for a good or service that arises from the demand for another good or service; for example, the demand for steel is derived from the demand for cars.

Input

Refers to the resources, materials, or services that are used in the production of goods and services.

Output

The total amount of goods or services produced by a company, industry, or country.