The following table contains hypothetical data for the 2001 U.S. balance of paym

Question

The following table contains hypothetical data for the 2001 U.S. balance of payments. Answer the next question(s) on the basis of this information. All figures are in billions of dollars.

1) U.S. goods exports +$100

2) U.S. goods imports -80

3) U.S. service exports +40

4) U.S. service imports -90

5) Net investment income +20

6) Net transfers -15

7) Foreign purchases of assets in the United States +30

8) U.S. purchases of foreign assets abroad -10

9) Official reserves +5

Question 1) Refer to the above data. The United States has a balance of goods:

A) deficit of $10 billion.

B) surplus of $30 billion.

C) deficit of $30 billion.

D) surplus of $20 billion.

Question 2) Refer to the above data. The U.S. balance on goods and services is a:

A) $20 billion deficit.

B) $30 billion surplus.

C) $30 billion deficit.

D) $20 billion surplus.

Explanation / Answer

1)

export of goods = 100

imports o goods = 80

balance of goods =   export of goods -  imports of goods  

= 100 - 80

= 20

The US has balance of goods suplus of $20 billion.

so D is correct option

2)

Balance of goods and services = goods exports + services exports - goods imports - services imports

= 100 + 40 - 80 - 90

= 140 - 170

= - 30

which means US balance on goods and services is a  $30 billion deficit.

so C is correct option

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.