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

Question

BlackTom AI · Accepted Answer

When examining what happens if a country’s exports exceed its imports, we are looking at a positive net export scenario, since exports are larger than imports and thus contribute positively to the country’s balance of trade.
Option a: 'A trade deficit and positive net exports' would imply imports exceed exports (deficit) while net exports remain positive, which is inconsistent. A deficit indicates negative net exports, not positive.
Option b: 'A trade surplus and positive net exports' aligns with the definition of a trade surplus, where exports exceed imports, resulting in positive net exports. This is the correct pairing of terms for the given condition.
Option c: 'A trade surplus and negative net exports' is internally inconsistent because a trade surplus implies positive net exports, not negative. Negative net exports would correspond to a deficit.
Option d: 'A trade deficit and negative net exports' describes the opposite of the stated condition, where imports exceed exports and net exports are negative, i.e., a deficit with negative net exports. This does not match exports exceeding imports.

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

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