If a Country Had a Trade Deficit of $20 Billion

question 61

Multiple Choice

If a country had a trade deficit of $20 billion and then its exports rose by $7 billion and its imports fell by $10 billion,its net exports would now be

• A)$37 billion
• B)$3 billion
• C)-$3 billion
• D)-$37 billion

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Definitions:

Poverty Levels

Economic thresholds below which individuals or families are considered to be living in poverty, often measured by income.

Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period, used as a broad measure of economic activity.

Final Goods

Products that have completed the manufacturing process and are ready for use by consumers or businesses without further transformation.

World System Theory

A socioeconomic theory that views the global economy as a complex system governed by a capitalist world economy divided into core, semi-periphery, and periphery countries.