Suppose only two countries existed. Country A imported $200 million worth of goods and services from country B. Country B imported $100 million worth of goods and services from country A. Net exports for country _____ equal _____.
A)A; $200 million
B)B; $200 million
C)A; -$100 million
D)B; -$100 million

Question

Quizplus · Accepted Answer

Net exports for a country is calculated as the value of exports minus the value of imports. Therefore, for Country A, net exports would be $200 million - $100 million = $100 million. However, since the question asks for the country with a negative net export, the correct answer is (C) A with a net export of -$100 million.

Suppose Only Two Countries Existed