A country purchases more goods and services from residents of foreign countries than residents of foreign countries purchase from it. This country has

Question

A country purchases more goods and services from residents of foreign countries than residents of foreign countries purchase from it. This country has
	a.

a trade deficit and negative net exports.
	b.

a trade surplus and positive net exports.
	c.

a trade deficit and positive net exports.
	d.

a trade surplus and negative net exports.

GPT-4o mini · Answer

The correct answer is:

a. a trade deficit and negative net exports.

When a country imports more goods and services than it exports, it experiences a trade deficit, which is reflected in negative net exports. Net exports are calculated as the value of exports minus the value of imports. When imports exceed exports, net exports are negative.