Question

If a country sells fewer goods and services abroad than it buys from other countries, it is said to have a trade _______?

1) deficit
2) surplus
3) balance
4) equilibrium

Answer 1

If a country sells fewer goods and services abroad than it buys from other countries, it is said to have a trade deficit. A trade deficit occurs when the value of a country's imports exceeds the value of its exports.

Step-by-step explanation:

The correct answer is 1) deficit.

If a country sells fewer goods and services abroad than it buys from other countries, it is said to have a trade deficit. A trade deficit occurs when the value of a country's imports exceeds the value of its exports. This means that the country is importing more goods and services than it is exporting, resulting in a negative balance of trade.