Practice Surplus (7.3) - International Economics - IB 10 Individuals & Societies

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9 questions

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6 sample questions

Question 1.
Define surplus in economic terms.
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Think about what happens when a country's sales to other nations are higher than its purchases.
Question 2.
What does a current account surplus indicate?
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Consider the flow of money into and out of a country.
3Question 3.
What does a trade surplus indicate?
- Exports exceed imports
- Imports exceed exports
- Balance of trade is zero
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Think about the direction of trade flow.
4Question 4.
True or False: A current account surplus always benefits a country's economy.
- True
- False
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Consider possible negative reactions from trading partners.
Question 5.
Evaluate the long-term effects of a trade surplus on domestic industries. Would they become complacent?
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Consider what happens when businesses become too comfortable and stop improving.
Question 6.
Analyze a historical example of a country facing retaliation due to its trade surplus. What were the outcomes?
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Think about modern trade relations and past tariffs imposed on well-performing economies.

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