Answer the Question on the Basis of the Following Balance

question 99

Multiple Choice

Answer the question on the basis of the following balance of payments data for the hypothetical nation of Econland. All figures are in billions of dollars. (1) Goods exports +$220
(2) Goods imports -328
(3) Exports of services +54
(4) Imports of services -55
(5) Net investment income +18
(6) Net transfers -11
(7) Capital account -1
(8) Foreign purchases of Econland assets +124
(9) Econland purchases of foreign assets -21
Refer to the table above. Econland's balance on the capital and financial accounts is a:

• A) Deficit of $110 billion
• B) Surplus of $92 billion
• C) Surplus of $102 billion
• D) Surplus of $103 billion

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Definitions:

Quantity Supplied

The quantity of a service or good that is available for sale by producers who are ready and able to sell at a particular price, over an agreed period.

Quantity Demanded

The cumulative total of a good or service that customers intend and can afford to buy at a set price level.

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price in a given time period.

Surplus

An economic situation where the quantity of goods supplied is greater than the quantity demanded.