The Following Balance-Of-Payments Data Are for the Hypothetical Nation of Zabella

question 44

Multiple Choice

The following balance-of-payments data are for the hypothetical nation of Zabella. All figures are in billions of dollars.

$\begin{array} { | l | c | } \hline \text { Merchandise exports } & + \$ 80 \\\hline \text { Merchandise imports } & - 70 \\\hline \text { Service exports } & + 20 \\\hline \text { Service imports } & - 25 \\\hline \text { Investment income } & + 5 \\\hline \text { Transfers } & - 5 \\\hline \text { Capital and financial inflows } & + 13 \\\hline \begin{array} { l } \text { Capital and financial } \\\text { outflows }\end{array} & - 23 \\\hline \text { Changes in official reserves } & + 5 \\\hline\end{array}$
-Zabella's capital account and financial account balance shows a:

• A)deficit of $10 billion
• B)surplus of $5 billion
• C)deficit of $28 billion
• D)surplus of $28 billion
• E)surplus of $10 billion

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Definitions:

Labor

The deployment of human physical and cognitive efforts towards the creation of goods and the provision of services.

Equilibrium Price

The cost at which the amount of a product consumers want to buy matches the amount that producers are willing to sell.

Stadium

A large, usually outdoor structure for sports, concerts, or other events, featuring a field or stage and seating for spectators.

Football Game

A sporting event involving two teams that compete to score points by advancing a ball into the opposing team's end zone, governed by a set of rules.