Question

If the United States exports 500 of goods and services and imports 700 of goods and services, what is the net balance of trade?

1) 200
2) -200
3) 500
4) -500

Answer 1

The net balance of trade is -200.

Step-by-step explanation:

The net balance of trade is the difference between the value of exports and the value of imports. In this case, the United States exports 500 of goods and services and imports 700 of goods and services. To find the net balance of trade, we subtract the value of imports from the value of exports: 500 - 700 = -200. Therefore, the correct answer is option 2) -200.