Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth

question 34

Multiple Choice

Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-According to Scenario 4-1, country B is running a:

• A)trade deficit with country A and a trade surplus with country C.
• B)trade surplus with both countries A and C.
• C)trade surplus with country A and a trade deficit with country C.
• D)trade deficit with both countries A and C.
• E)balanced trade with country A and a trade deficit with country C.

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Definitions:

Total Surplus

The aggregate benefit to society, constituted by the addition of consumer and producer surplus, derived from the creation and utilization of goods and services.

Total Surplus

The aggregate of producer surplus and consumer surplus, symbolizing the complete net advantage to society through the consumption and manufacture of goods and services.

Auction

A public sale in which goods or services are sold to the highest bidder.

Total Surplus

The combined total of consumer and producer surplus, indicating the overall net gain to society from producing and consuming goods and services.