In 2015,Denmark had net exports of $100 billion and sold $600 billion of goods and services abroad.What were Denmark's components of net exports?
A) $500 billion of exports and $600 billion of imports
B) $500 billion of exports and $700 billion of imports
C) $600 billion of exports and $500 billion of imports
D) $700 billion of exports and $500 billion of imports

Question

Quizplus · Accepted Answer

Net exports equal exports minus imports. We know that Denmark's net exports in 2015 were $100 billion, and that they sold $600 billion of goods and services abroad. Therefore, their imports must have been $500 billion ($600 billion of exports - $100 billion of net exports = $500 billion of imports). So the components of their net exports would be $600 billion of exports and $500 billion of imports.

In 2015,Denmark Had Net Exports of $100 Billion and Sold