Match each term with it's description.
Group of answer choices
Balance of Trade
Trade Surplus
Trade Deficit
1. Balance of Trade - The difference between a country's total exports and total imports of goods and services in a given period of time.
2. Trade Surplus - When a country exports more goods and services than it imports, resulting in a positive balance of trade.
3. Trade Deficit - When a country imports more goods and services than it exports, resulting in a negative balance of trade.
To match each term with its description, we need to define each term first.
1. Balance of Trade: The balance of trade refers to the difference between the value of a country's exports and the value of its imports over a given period (usually a year). It is used to measure the trade relationship between a country and the rest of the world.
2. Trade Surplus: A trade surplus occurs when the value of a country's exports exceeds the value of its imports. It means that a country is exporting more goods and services than it is importing, resulting in a positive balance of trade.
3. Trade Deficit: A trade deficit occurs when the value of a country's imports exceeds the value of its exports. It means that a country is importing more goods and services than it is exporting, resulting in a negative balance of trade.
Now, let's match each term with its description:
- Balance of Trade: A measurement of the difference between a country's exports and imports over a specific period.
- Trade Surplus: When a country's exports exceed its imports, resulting in a positive balance of trade.
- Trade Deficit: When a country's imports exceed its exports, resulting in a negative balance of trade.
Balance of Trade: The difference between the value of a country's exports and the value of its imports of goods and services over a specific period of time.
Trade Surplus: A situation in which the value of a country's exports exceeds the value of its imports, resulting in a positive balance of trade.
Trade Deficit: A situation in which the value of a country's imports exceeds the value of its exports, resulting in a negative balance of trade.