7.3 - Surplus
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Practice Questions
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Define surplus in economic terms.
💡 Hint: Think about what happens when a country's sales to other nations are higher than its purchases.
What does a current account surplus indicate?
💡 Hint: Consider the flow of money into and out of a country.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does a trade surplus indicate?
💡 Hint: Think about the direction of trade flow.
True or False: A current account surplus always benefits a country's economy.
💡 Hint: Consider possible negative reactions from trading partners.
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Challenge Problems
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Evaluate the long-term effects of a trade surplus on domestic industries. Would they become complacent?
💡 Hint: Consider what happens when businesses become too comfortable and stop improving.
Analyze a historical example of a country facing retaliation due to its trade surplus. What were the outcomes?
💡 Hint: Think about modern trade relations and past tariffs imposed on well-performing economies.
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