Question

Over the course of a year, a nation records that its exports total an equivalent of $61,475,059, and its imports total an equivalent of $69,696,824. What is this nation’s balance of trade? a. trade deficit of $131,171,883 b. trade deficit of $8,221,765 c. trade surplus of $131,171,883 d. trade surplus of $8,221,765

Answer 1

Answer: B. trade deficit of $8,221,765

Explanation:

In the condition of trade deficit ,

Import > Export,

While in the condition of trade surplus,

Import < Export,

Here, Import = $69,696,824 and export = $61,475,059,

Since, $69,696,824 > $61,475,059

Therefore, here trade deficit occurs,

And, trade deficit = Total import - Total export = $69,696,824 - $61,475,059=$8,221,765

⇒ Option B is correct.

Answer 2

The trade deficit will be given by:
deficit=(amount exported)-(amount imported)
amount exported=$61,475,059
amount imported=$69,696,824.
deficit=(69,696,824-61,475,059)
trade deficit=$8,221,765

Answer: b. trade deficit of $8,221,765