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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define surplus in economic terms.
💡 Hint: Think about what happens when a country's sales to other nations are higher than its purchases.
Question 2
Easy
What does a current account surplus indicate?
💡 Hint: Consider the flow of money into and out of a country.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What does a trade surplus indicate?
- Exports exceed imports
- Imports exceed exports
- Balance of trade is zero
💡 Hint: Think about the direction of trade flow.
Question 2
True or False: A current account surplus always benefits a country's economy.
- True
- False
💡 Hint: Consider possible negative reactions from trading partners.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
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.
Question 2
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.
Challenge and get performance evaluation