If a country's exports exceed its imports, the country has:

Question

BlackTom AI · Accepted Answer

When considering international trade, exports minus imports determine whether a country has a trade surplus or a trade deficit, and whether net exports are positive or negative.

Option a. A trade surplus and negative net exports
- This combination is inconsistent: a trade surplus means exports exceed imports, which yields positive net exports, not negative. Labeling net exports as negative contradicts the definition of surplus.

Option b. A trade surplus and positive net exports
- This pairing aligns with the basic concepts: if a country exports more than it imports, it has a trade surplus and the value of net exports (exports minus imports) is positive. This reflects a net inflow from trade.

Option c. A trade deficit and negative net exports
- A trade deficit occurs when imports exceed exports, which corresponds to negative net exports. While the second part (negative net exports) is correct for a deficit, the question states exports exceed imports, so this option mixes a surplus condition with a deficit outcome, which is incorrect.

Option d. A trade deficit and positive net exports
- This combination is logically inconsistent: a deficit implies imports exceed exports, leading to negative net exports. A positive net export would indicate a surplus, not a deficit, making this option internally inconsistent.

In summary, the scenario described—exports exceeding imports—matches the idea of a trade surplus and positive net exports, while the other options pair contradictory signs with the surplus/deficit concepts.

If a country's exports exceed its imports, the country has:

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