Examine the following table: Value of Exports (in billions)Value of Imports (in billions)BalanceGoods$100$200-$100Services$150$100$50Income Receipts and Payments$300$200$100Unilateral Transfers$30$60-$30 $580$560$20The data highlighted in the last row of the table represent the:A) Current Account BalanceB) Income BalanceC) Merchandise Trade Balance

Answered: Examine the following table: Value…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 6SCQ: The GDP for the United States is 18,036 billion and its current account balance is 484 billion. What...

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Examine the following table:

	Value of Exports (in billions)	Value of Imports (in billions)	Balance
Goods	$100	$200	-$100
Services	$150	$100	$50
Income Receipts and Payments	$300	$200	$100
Unilateral Transfers	$30	$60	-$30
	$580	$560	$20

The data highlighted in the last row of the table represent the:

A) Current Account Balance

B) Income Balance

C) Merchandise Trade Balance

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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Current account balance: it refers to the difference between the value of total credit and debit sides.

Merchandise trade balance: it refers to the difference between exports and imports of goods only.

Income balance: it refers to the difference between income receipts and income payments.

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