Question

An economist tracking a country’s imports and exports finds that one year, the country’s imports total an equivalent of $64,821,824, and its exports total an equivalent of $54,058,726. What is this country’s balance of trade for that year?

a.
trade deficit of $10,763,098
b.
trade deficit of $118,880,550
c.
trade surplus of $10,763,098
d.
trade surplus of $118,880,550

Answer 1

a. trade deficit of $10,763,098

Explanation:

Answer 2

• A. Trade deficit of $10,763,098

Explanation:

• A trade deficit occurs when imports exceed the exports.
• A trade surplus occurs is when exports exceed the imports.

In the given case we have trade deficit of:

• $64821824 - $54058726 = $10763098

Correct choice is A