State the term for the situation in which the value of a country's visible imports exceeds the value of its visible exports over a period.

Model answer

trade deficit

Also accepted: a trade deficit, balance of trade deficit, deficit on the balance of trade

Explanation

Visible trade is trade in goods, so a trade deficit means the country buys more goods from abroad than it sells. It must be financed, whether by earnings on services and income, by borrowing, or by drawing down reserves of foreign currency.

Derived from ZIMSEC Economics 9158/2 Paper 2, November 2016, Q1

View this paper's sittings and topics→

More questions from this paper

State the term for the weighted index number that measures the average change over time in the prices of a representative basket of goods and services bought by a typical household.
Annual inflation fell from 46,6% in December 1998 to 44,2% in January 1999 even though prices rose by 3,8% during January itself. The best explanation is
Income elasticity of demand measures the responsiveness of quantity demanded of a good to a change in
In a UK survey of income elasticities (1998-2000), liquid whole milk had an income elasticity of demand of -0.17, while fish had an income elasticity of demand of +0.27. Based on these figures, liquid whole milk is classified as
A survey found food overall has an income elasticity of demand of +0.20: a 10 percent rise in income raises the quantity of food demanded by only about 2 percent. As household income grows over time, this low income elasticity means that spending on food as a proportion of total household expenditure will

Get the full paper, not just one question

Danho has every sitting for this paper, with your progress tracked question by question, offline.

Get it on Google Play Download on the App Store