Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-According to Scenario 4-1, country B is running a:
A)trade deficit with country A and a trade surplus with country C.
B)trade surplus with both countries A and C.
C)trade surplus with country A and a trade deficit with country C.
D)trade deficit with both countries A and C.
E)balanced trade with country A and a trade deficit with country C.

Question

Quizplus · Accepted Answer

Country B is running a trade deficit with country A because it imported more ($12 million) from A than it exported to it ($4 million), and it is running a trade surplus with country C because it exported more ($7 million) to C than it imported from it ($2 million).

Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth