Current Account (1) Goods Exports+$80(2) Goods Imports−70(3) Exports of Services+20(4) Imports of Services−25(5) Net Investment Income+5(6) Net Transfers−5Financial Account(7) Foreign Purchases of Assets in the United States+13(8) US Purchases of Foreign Assets Abroad-23Capital Account(9) Balance on Capital Account+5 The table contains balance of payments data (+ and −) for the hypothetical nation of Zabella. All figures are in billions of dollars. Zabella has a balance of trade (goods) Multiple Choice deficit of $10 billion. surplus of $5 billion. surplus of $10 billion. deficit of $5 billion.

Balance of trade shows the imports and exports of goods and services of a country.

Answered: Current Account (1) Goods Exports…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Current Account
(1) Goods Exports	+$80
(2) Goods Imports	−70
(3) Exports of Services	+20
(4) Imports of Services	−25
(5) Net Investment Income	+5
(6) Net Transfers	−5
Financial Account
(7) Foreign Purchases of Assets in the United States	+13
(8) US Purchases of Foreign Assets Abroad	-23
Capital Account
(9) Balance on Capital Account	+5

The table contains balance of payments data (+ and −) for the hypothetical nation of Zabella. All figures are in billions of dollars. Zabella has a balance of trade (goods)

Multiple Choice

deficit of $10 billion.
surplus of $5 billion.
surplus of $10 billion.
deficit of $5 billion.

Definition Definition Difference in value of a country's net exports and net imports for goods and services in a given period. A positive balance of trade is called a surplus and coincides with more net cash inflows into a country; a negative balance of trade deficit is a deficit and results in net cash outflows. A balance of trade surplus or deficit doesn't necessarily indicate a positive or negative situation for a country.

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