Question

In 2010, the country of Vesey exported goods worth $312 billion and services worth $198 billion. It imported goods worth $525 billion and services worth $255 billion. It sent $1.2 billion in famine relief to Africa, and received $3 billion to support its first democratic election efforts. What was the merchandise trade deficit in Vesey in 2010?A. $213 billion.
B. $270 billion.
C. $57 billion.
D. $1.8 billion.

Answer 1

Answer:

A. $213 billion

Explanation:

Given that

Good imported = 525 billion

Good exported = 312 billion

Recall that

Merchandise trade deficit = Export - Import

Thus

= 312 - 525

= -$213 billion

The negative sign indicates a deficit of $213 billion in merchandise trade.

NOTE that merchandise refers to produced GOODS, goods sold and bought. Thus, services and other things are not included in the calculation.