Which of the following represents a positive balance of trade for a country?

• A. The country has no exports or imports
• B. Exports are equal to imports
• C. Imports are greater than exports
• D. Exports are greater than imports

Answer: (D)

Verified step by step guidance

1. Understand the concept of the balance of trade, which is the difference between the value of a country's exports and imports over a certain period.
2. Recall that a positive balance of trade, also called a trade surplus, occurs when the value of exports exceeds the value of imports.
3. Analyze each option: if there are no exports or imports, the balance of trade is zero; if exports equal imports, the balance is zero; if imports are greater than exports, the balance is negative (trade deficit).
4. Identify that the only scenario representing a positive balance of trade is when exports are greater than imports.
5. Conclude that the correct answer is the option where exports exceed imports, indicating a trade surplus.