The table below shows national income and imports.The level of exports is fixed at $300.All figures in the table and in the questions are in millions of dollars. TABLE 22-1 Refer to Table 22-1.What are the correct values for the level of net exports (a,b,c,and d)at each level of national income?
A)a = $150,b = $50,c = -$50,d = -$150
B)a = -$150,b = -$50,c = $50,d = $150
C)a = $150,b = $250,c = $350,d = $450
D)a = $300,b = $300,c = $300,d = $300
E)not enough data to determine

Question

The table below shows national income and imports.The level of exports is fixed at $300.All figures in the table and in the questions are in millions of dollars.  TABLE 22-1 Refer to Table 22-1.What are the correct values for the level of net exports (a,b,c,and d)at each level of national income?
A)a = $150,b = $50,c = -$50,d = -$150 
B)a = -$150,b = -$50,c = $50,d = $150 
C)a = $150,b = $250,c = $350,d = $450 
D)a = $300,b = $300,c = $300,d = $300 
E)not enough data to determine

Quizplus · Accepted Answer

Net exports = Exports - Imports
At national income of $400:
Net exports = $300 - $200 = $100
At national income of $500:
Net exports = $300 - $250 = $50
At national income of $600:
Net exports = $300 - $350 = -$50
At national income of $700:
Net exports = $300 - $450 = -$150 
Therefore, the correct values for net exports are a = $150, b = $50, c = -$50, and d = -$150. This is option A.

The Table Below Shows National Income and Imports