ObjectiveMcq
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Which of the following statements is INCORRECT?
Correct Answer: C — When exports exceed imports, there is a trade deficit.
The correct answer is C: When exports exceed imports, there is a trade deficit.
This is incorrect — when exports exceed imports, a country has a trade surplus, not a deficit. A trade deficit occurs when imports exceed exports. A trade surplus indicates a country sells more to the world than it buys, while a trade deficit means the opposite.