Assertion (A): A positive value of net exports implies a trade surplus.
Reason (R): Net exports are equal to imports minus exports.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) is true but (R) is false.
Assertion (A): A positive value of net exports implies a trade surplus. — True. Positive NX means exports are greater than imports.
Reason (R): Net exports are equal to imports minus exports. — False. Net exports are exports minus imports, X − M.
NCERT (2026-27): “National Income Identity for an Open Economy … where, NX is net exports (exports – imports). A positive NX (with exports greater than imports) implies a trade surplus and a negative NX (with imports exceeding exports) implies a trade deficit. …” |