Question

One problem that may result when a nation imports more than exports is?

a)taxes on imports
b)high unemployment
c)falling government revenues
d)low prices on imported goods

Answer 1

The answer you were looking for is: B

Answer 2

The correct option is B.
When a country imports more goods than the ones it export out, then such a country is experiencing a trade deficit. The disadvantages of trade deficit include: unemployment, decline in currency value, increase in interest rates and a high degree of foreign direct investment.
When most of the goods that are used in a country is gotten from other countries abroad, this will incapacitate the domestic businesses and some of them may close down leading to unemployment.