Question

Which of the following statement(s) is/ are not true?

• A. When the imports are more than the exports, it is a positive balance of trade.
• B. When the exports are more than the imports, it is a negative balance of trade.
• C. When the exports are more than the imports, it is a positive balance of trade.
• D. When the exports are less than the imports, it is a negative balance of trade.

Answer 1

Answer: (A), (B)

The correct options are
A When the imports are more than the exports, it is a positive balance of trade.
B When the exports are more than the imports, it is a negative balance of trade.

If a country’s exports are more than its imports we call it a positive balance of trade or a favourable balance of trade. If its exports are less than imports we call it a negative balance of trade or an unfavourable balance of trade.