Question

Which of these best describes a situation in which a country has a "trade deficit"?

Answer 1

Deficit. It is a Latin word that represents a negative balance, a loss, or a system that spends more than one earns. Within the trade balance, the deficit happens when the value of imports is higher than that of exports.

Answer 2

I had to look for the options and here is my answer:

The one that best illustrates a scenario that shows a country having a "trade deficit" is when their imports exceed their exports. This means that they have spent more on imports than what they earn on their exports and this creates an imbalance in the nation's economy.