Essentials of Economics
4th Edition
ISBN: 9781464186653
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Chapter 20, Problem 10P
To determine
Merchandise trade balance for Scottopia, Balance of payments on current account and financial account.
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The table below contains 2014 balance of payments accounts for Germany (in billions of Euros). Calculate the merchandise trade balance, the balance on goods and services, and the current account balance.
Exports of goods services and income receipts (credits)
2,095
Exports of goods and services
1,756
Goods
1,479
Services
277
Primary income receipts
259
Secondary income receipts
78
Imports of goods services and income payments (debits)
1,814
Imports of goods and services
1,510
Goods
1,179
Services
330
Primary income payments
171
Secondary income payments
132
Merchandise trade balance (balance on goods)
Balance on goods and services
Current account balance
Exports
$750
Imports
$600
Net income from abroad -$225
Net unilateral transfers
$30
Based on the data above, what is the current account and financial/capital account balance?
The current account is in deficit, and the financial/capital account is in surplus.
The current account and financial/capital account are both in deficit.
The current account and financial/capital account are both in surplus.
The current account is zero, and the financial/capital account is in surplus.
In 2008, a small country imported goods worth $400 billion and exported goods worth $245 billion. It exported services worth $248 billion and imported services worth $530 billion. Payments on investments abroad totaled $499 billion, while returns paid on foreign investments were $25 billion. Unilateral transfers from the country to other nations amounted to $81 billion. What was the country's merchandise trade balance for 2008? (In billions of Dollars.
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Chapter 20 Solutions
Essentials of Economics
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