Question

If imports are greater than exports, which of the following is true?
Responses

Trade balance is positive resulting in a deficit
Trade balance is positive resulting in a deficit

Trade balance is negative resulting in a deficit
Trade balance is negative resulting in a deficit

Trade balance is positive resulting in a surplus
Trade balance is positive resulting in a surplus

Trade balance is negative resulting in a surplus

Answer 1

If imports are greater than exports, the correct statement is:

**Trade balance is negative resulting in a deficit.**

In this context, a negative trade balance means that a country is importing more than it is exporting, which creates a trade deficit.