In 2001, Cote d'Ivore had $3 billion of net exports and bought $1 billion of goods from foreign countries. What were Cote d'Ivore's changes in the components of net exports?
A)an increase of $4 billion in exports and $1 billion in imports
B)an increase of $3 billion in imports and $2 billion in exports
C)an increase of $2 billion in exports and $3 billion in imports
D)an increase of $1 billion in imports and $4 billion in exports

Question

Quizplus · Accepted Answer

Net exports = Exports - Imports
In 2001, Net exports = $3 billion
Therefore, exports = $3 billion + imports = $4 billion
Given that imports = $1 billion, exports = $4 billion - $1 billion = $3 billion
To find the change in each component:
Change in exports = $3 billion - $0 billion = $3 billion increase
Change in imports = $1 billion - $0 billion = $1 billion increase
Therefore, the correct answer is A: an increase of $4 billion in exports and $1 billion in imports.

In 2001, Cote D'Ivore Had $3 Billion of Net Exports