Multiple choice

Balance of Trade means

  1. total trade

  2. difference between imports and exports

  3. the profit earned by a trader

  4. cost price plus profit
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B Correct answer
Explanation

Balance of Trade is the difference between a country's exports and imports of goods. It's not total trade volume, not a trader's profit, and not a pricing calculation. When exports exceed imports, it's favorable (surplus); when imports exceed exports, it's unfavorable (deficit).

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