The Table Given Below Reports the Value of Various International

question 14

Multiple Choice

The table given below reports the value of various international transactions in Germany for the year 2011. The negative sign denotes the outflow of euros from Germany.
Table 6.1
$\begin{array}{|l|c|}\hline \text { German 2010 Transactions } & \text { Millions of Euros } \\\hline \text { Capital Inflows } & € 1,420 \\\hline \text { Exports of Goods } & € 750 \\\hline \text { Imports of Services } & -€ 430 \\\hline \text { Investment Income Receipts } & € 400 \\\hline \text { Investment Income Payments } & € 670 \\\hline \text { Unilateral Transfers } & -€ 470 \\\hline \text { Exports of Services } & € 340 \\\hline \text { Imports of Goods } & -€ 790 \\\hline \text { Capital Outflows } & -€ 920 \\\hline\end{array}$
-Refer to Table 6.1. Compute the merchandise trade balance of Germany in 2011.

• A) -€800
• B) -€130
• C) -€40
• D) €40
• E) €130

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Definitions:

Marginal Disutility

The additional dissatisfaction or negative utility a person receives from consuming one more unit of a good or service.

Successive Unit

The next unit or piece in a series or sequence, often used in the context of production or consumption.

Framing Effect

The cognitive bias where people's decisions are influenced by the way information is presented rather than the information itself.

Relatively Cheap

A term used to describe goods or services that are considered to be priced lower than their perceived value or compared to alternative options.