Ace the 2026 QCAA Economics Exam – Elevate Your Knowledge and Rule the Demand Curve!

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Net exports (NX) equals exports minus imports. Which of the following statements is true about NX?

NX equals exports minus imports; If a country runs a trade surplus, NX is positive.

NX is defined as exports minus imports, so its sign tells you whether a country has a trade surplus or a trade deficit. When exports exceed imports, NX is positive, meaning the country sells more abroad than it buys. That’s exactly what a trade surplus represents.

The statement that NX equals imports minus exports would invert the sign, so it would imply a surplus when there is a deficit and vice versa, which isn’t how NX is defined. The other options describe different concepts: government spending minus taxes is the fiscal balance, not NX, and consumption minus investment is not the measure of net exports.

NX equals imports minus exports; If trade surplus, NX negative.

NX equals government spending minus taxes.

NX equals total consumption minus investment.