Which one of the following terms refers to the difference between a country’s total exports and total imports ?
[amp_mcq option1=”Fiscal deficit” option2=”Current account deficit” option3=”Trade deficit” option4=”Budget deficit” correct=”option3″]
This question was previously asked in
UPSC Combined Section Officer – 2021-22
The difference between a country’s total exports and total imports of goods is known as the Trade Balance. When imports exceed exports, it results in a Trade Deficit. The question specifically asks for the difference, which, when imports are greater than exports, is called a trade deficit.
Trade Balance = Value of Exports – Value of Imports. A Trade Deficit occurs when Imports > Exports.