Question

The balance of trade is the:

a. Value of goods exported minus the value of goods imported.
b. Explicit costs of producing goods for export less the implicit costs of imported goods.
c. Value of goods exported plus tax revenues on trade goods.
d. Amount of spending by Americans abroad as tourists plus the amount that foreign tourists spend in this country.

Answer 1

The balance of trade is the gap between a nation's dollar value of its exports and imports. The correct answer is a. Value of goods exported minus the value of goods imported.

Step-by-step explanation:

The balance of trade is the gap between a nation's dollar value of its exports, or what its producers sell abroad, and a nation's dollar value of imports, or the foreign-made products and services that households and businesses purchase. It is calculated by subtracting the value of goods imported from the value of goods exported. Option a. Value of goods exported minus the value of goods imported is the correct answer to the question.