When exports are higher than imports, it is known as a situation of _______.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. trade surplus.
When exports exceed imports, it is known as a situation of trade surplus.
- It is a situation in which a country sells more to other countries than it buys from other countries.
- When net income is more than net expenditure then it is called revenue plus.