Concept explainers
(a)
Using the given data, calculate the merchandise
Concept introduction:
The periodical evaluation of trade balance i.e. the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.
Explanation of Solution
=
Here, the merchandise trade balance is -$2,075 billion. The negative balance indicates a
(b)
The balance on goods and services.
Concept introduction:
The periodical evaluation of trade balance i.e. the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.
Explanation of Solution
Import of Good and services =
Balance on Goods and Services =
Here, the balance on goods and services is -$100 billion. The negative balance indicates a trade deficit.
(c)
Using the given data, calculate the balance on current account.
Concept introduction:
The periodical evaluation of trade balance i.e. the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.
Explanation of Solution
Here, the balance on current account is $121.5 billion.
(d)
Using the given data, calculate the financial account balance.
Concept introduction:
The periodical evaluation of trade balance i.e. the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.
Explanation of Solution
Here, the financial account balance is -$145.0 billion. The negative balance indicates a trade deficit.
(e)
Using the given data, calculate the statistical discrepancy.
Concept Introduction:
The periodical evaluation of trade balance i.e. the difference in the value between the imports and exports is known as Merchandise Trade Balance. The evaluation is performed on monthly and yearly basis.
Explanation of Solution
Here, the statistical discrepancy is $23.5 billion.
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Chapter 20 Solutions
MICRO ECON 5-TEXT
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- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax