What is defined as a situation where exports exceed imports?

The correct answer is defined as a trade surplus. A trade surplus occurs when a country exports more goods and services than it imports. This situation indicates that a nation is selling more to other countries than it is buying from them, leading to a positive balance of trade.

A trade surplus can be indicative of a strong economy, as it may suggest that domestic industries are competitive internationally, leading to higher levels of foreign demand for a country's products. This can result in increased employment and positive effects on the domestic currency value, benefiting the overall economic environment.

To clarify the incorrect options: A trade deficit occurs when imports surpass exports, indicating that a country is spending more on foreign trade than it is earning. Capital goods refer to assets used in the production of goods and services rather than a measure of trade. Aggregation relates to the process of combining various individual items into a total or summary figure, but it does not directly pertain to the balance of trade.