Economic Awareness - Sectors of Indian Economy
Which of the following best describes the trade deficit?
Which of the following best describes the trade deficit?
medium Q7 of 15
Step-by-Step Solution
Step 1: Understand trade deficit
Trade deficit occurs when the value of imports exceeds the value of exports in an economy.Step 2: Analyze options
Only imports exceeding exports correctly defines trade deficit. Exports exceeding imports is trade surplus. Equal exports and imports is balanced trade.Final Answer:
Imports exceed exports → Option AQuick Check:
Trade deficit = imports greater than exports ✅
Quick Trick: Trade deficit = imports > exports.
Common Mistakes:
MISTAKES- Confusing trade deficit with trade surplus.
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