Question

In 2010, the country of Vesey exported goods worth $312 billion and services worth $198 billion. It imported goods worth $525 billion and services worth $255 billion. It sent $1.2 billion in famine relief to Africa, and received $3 billion to support its first democratic election efforts. What was the merchandise trade deficit in Vesey in 2010​?

A. $213 billion

B. $270 billion

C. $57 billion

D. $1.8 billion

Answer 1

The correct answer is (A) $213 billion

Merchandise Trade deficit is defined as the Total value of goods imported less total value of goods exported(Note that it does not takes into account services and Transfers).

Here, he country of Vesey exported goods worth $312 billion => total value of goods exported = 312 billion.

Also it is given that, It imported goods worth $525 billion => total value of goods imported = 525 billion.

So,, Merchandise Trade deficit = Total value of goods imported - total value of goods exported

= 525 billion - 312 billion = 213 billion.

Thus, Merchandise Trade deficit = $213 billion.

Hence, the correct answer is (A) $213 billion.