Question

If the Land of Mercury had total exports of $150 billion and total imports of $234 billion, it had a A. comparative advantage B. trade deficit C. balance of payments D. negative output E. trade surplus

Answer 1

Answer: B : Trade deficit

If a land of Mercury had total exports of $150billion and total imports of $234billion, it had a "trade deficit".

Explanation:

Trade deficit can be termed an amount by which a country's costs of imports exceeds cost of exports. It is also known as negative balance of trade. Trade deficit is a term of trade that measures international trade.

Trade deficit is obtained by subtracting a country's export from its imports.

Mathematically :

Trade deficit = imports - exports

Trade deficit occurs when a country foreign debt is greater than what it produce for exports. Also when a country depends on another country for refinering their manufactured goods, such country will experience trade deficit.

It can be controlled by promoting constructions of refineries to process products, productions of raw materials for goods, improving exports and limiting imports.