Answer the question(s)below based on the following diagram of a country that is in international trade equilibrium.

-Refer to the figure above.This country's exports equal
A)CE units of X.
B)GH units of Y.
C)CD units of X.
D)DE units of Y.

Question

Answer the question(s)below based on the following diagram of a country that is in international trade equilibrium.
 
-Refer to the figure above.This country's exports equal
A)CE units of X. 
B)GH units of Y. 
C)CD units of X. 
D)DE units of Y.

Quizplus · Accepted Answer

In international trade equilibrium, the country's exports must equal its imports. We can see from the diagram that the country is exporting CD units of X, which is equal to the amount of X that is imported (represented by segment ED). Therefore, the correct answer is C) CD units of X.

Answer the Question(s)below Based on the Following Diagram of a Country