Which of the following best describes a trade surplus?

A trade surplus occurs when a country's exports exceed its imports. This situation is beneficial for the economy as it indicates that the country is selling more goods and services to other countries than it is buying from them. This can lead to positive financial effects, such as an influx of currency from foreign buyers, which can strengthen the nation’s economy. A trade surplus can also lead to increased domestic production, job creation, and a favorable balance of trade.

In contrast, when imports are greater than exports, it results in a trade deficit, which would be contrary to the concept of a trade surplus. Equal exports and imports suggest a balanced trade, which does not highlight the benefit of selling more than purchasing. High domestic consumption, while it can occur in a surplus condition, does not directly define a trade surplus as it does not necessarily correlate with the levels of export and import activities. Thus, the correct choice effectively defines a trade surplus as a scenario where a nation's exports are greater than its imports.