Question

Suppose only two countries existed in the world. 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. This means that net exports for:________
A. Country A equals $200 million.
B. Country B equals $200 million.
C. Country A equals –$100 million.
D. Country B equals –$100 million.
E. Country A equals $100 million.

Answer 1

Answer:

C. Country A equals –$100 million.

Explanation:

Imports from Country B to Country A = $200 million

Imports from Country A to Country B = $100 million

Imports for one country represents exports to another.

Net exports is the difference between exports and import for a country.

Net exports for country A = $100 million - $200 million = - $100 million

Net exports for country B = $200 million - $100 million = $100 million

Right option is C. Country A equals –$100 million. Country's A export is less than it's import.