Question

Which describes the difference between a trade surplus and a trade deficit?

 

a) A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports.

 

b) A trade surplus is when a country imports more than it exports, while a trade deficit happens when exports exceed imports.

 

c) A trade surplus is when a country produces more than it consumes, while a trade deficit happens when consumption exceeds production.

 

d) A trade deficit is when a country loses money on products it makes, while a trade surplus happens when production leads to profits.