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Economics miscellaneous

  1. A country’s balance of trade is unfavourable when —
    1. exports exceed imports
    2. imports exceed exports
    3. terms of trade become unfavourable
    4. None of these
Correct Option: B

The balance of trade, or net exports is the difference between the monetary value of exports and imports of output in an economy over a certain period. It is the relationship between a nation’s imports and exports. A positive balance is known as a trade surplus if it consists of exporting more than is imported; a negative balance is referred to as a trade deficit or, informally, a trade gap.



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