National Occupational Competency Testing Institute (NOCTI) Business Practice Exam

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Prepare for the National Occupational Competency Testing Institute Business Exam. Study using quizzes with multiple choice questions, hints, and detailed explanations. Elevate your readiness today!

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A country exported $689,269 worth of goods and imported $3,465,029 worth of goods. What is the trade balance?

$2,775,760 surplus
$2,775,760 deficit
$3,155,298 deficit
$2,775,760 balance

The correct answer is: $2,775,760 deficit

To determine the trade balance, you need to subtract the value of exports from the value of imports. In this case, the country exported goods worth $689,269 and imported goods worth $3,465,029. By performing the calculation: Trade Balance = Exports - Imports Trade Balance = $689,269 - $3,465,029 This results in a trade balance of -$2,775,760, indicating a deficit. A deficit occurs when a country imports more than it exports, meaning it is spending more on goods from other countries than it is earning from selling its own goods abroad. This understanding highlights that the correct choice accurately reflects the situation where the country has a trade deficit of $2,775,760, signaling that it is importing significantly more than it is exporting.