Question

Which describes the difference between a trade surplus and a trade deficit?

A trade surplus is when a country exports more than it imports, while a trade deficit happens when imports exceed exports.
A trade surplus is when a country imports more than it exports, while a trade deficit happens when exports exceed imports.
A trade surplus is when a country produces more than it consumes, while a trade deficit happens when consumption exceeds production.
A trade deficit is when a country loses money on products it makes, while a trade surplus happens when production leads to profits.