What term refers to the condition when exports are less than imports?

The term that describes the condition when exports are less than imports is known as a trade deficit. This occurs when a country buys more goods and services from other countries than it sells to them, resulting in a negative balance of trade.

A trade deficit can indicate that a country's consumers are favoring foreign products over domestic products, which might reflect higher demand for imported goods or a lack of competitiveness in certain sectors of the domestic market. It is important to monitor trade deficits, as sustained deficits can impact the economy by leading to increased borrowing from abroad and potential depreciation of the national currency over time.

The other terms do not accurately describe this specific economic situation. For instance, a trade-off generally involves making a decision between two options where gaining one comes at the cost of losing another, while investment pertains to the allocation of resources for future returns. Final goods refer to products that are completed and sold to the end consumer, which is unrelated to the balance of trade. Therefore, the defining aspect of a trade deficit is that it specifically denotes a scenario where imports exceed exports.