
Subpart (a):
Level of export.
Subpart (a):

Explanation of Solution
The level of export for each of the last five years of 2000 is tabulated below:
Table 1
YEAR | EXPGSCA |
1996 | 986.033 |
1997 | 1103.500 |
1998 | 1129.281 |
1999 | 1159.146 |
2000 | 1258.433 |
From Table 1, it can be inferred that the exports increase every year.
Concept introduction:
Export: Export refers to a trading of goods and services from a domestic country to a foreign country.
Subpart (b):
Level of import.
Subpart (b):

Explanation of Solution
The level of import for each of the last five years of 2000 is given in Table 2.
Table 2
YEAR | IMPGSCA |
1996 | 1100.592 |
1997 | 1248.825 |
1998 | 1394.798 |
1999 | 1536.232 |
2000 | 1736.215 |
From Table 2, it can be inferred that the imports increase every year.
Concept introduction:
Import: Import refers to the goods and services that are bought domestically but are produced in foreign countries.
Subpart (c):
Subpart (c):

Explanation of Solution
The trade deficit is calculated using the following equation:
Since the value of import is greater than that of exports, a trade deficit exists. Substitute the values in equation (1) to calculate the trade deficit for each year as follows:
The trade deficit for 2000 is 477.782.
Similarly, by substituting the values in equation (1), the trade deficit for each year is calculated and tabulated below:
Table 3
YEAR | TRADE DEFICIT |
1996 | 114.559 |
1997 | 145.325 |
1998 | 265.517 |
1999 | 377.086 |
2000 | 477.782 |
Concept introduction:
Trade deficit: Trade deficit is the situation where the country imports more goods and services than they export. It is the situation of negative trade balance, which means that the outflows of capital as payments to the imports are higher than the inflow of capital as revenue for the exports.
Subpart (d):
Trade deficit as a percentage of
Subpart (d):

Explanation of Solution
The trade deficit as a percentage of GDP is calculated using the following equation:
Substituting the values in equation (2), the trade deficit as a percentage of GDP for each year is calculated as follows:
The trade deficit as a percentage of GDP for 2000 is 3.80%.
Similarly, substituting values in equation (2), the trade deficit as a percentage of GDP for each of the last five years of 2000 is calculated and tabulated below:
Table 4
Year | Trade Deficit | GDPSCA | Trade Deficit as % Of GDP |
1996 | 114.559 | 10560.976 | 1.08% |
1997 | 145.325 | 11034.850 | 1.32% |
1998 | 265.517 | 11525.891 | 2.30% |
1999 | 377.086 | 12065.902 | 3.13% |
2000 | 477.782 | 12559.660 | 3.80% |
During recessions, that is, in years when the GDP falls from the previous year (starting Dec 2007 to 2009), the trade deficit tends to fall. Based on the information available in the given website, this can be tabulated as follows:
Table 5
Year | EXPGSCA | IMPGSCA | Trade deficit | GDPSCA |
2007 | 1646.394 | 2359.012 | 712.62 | 14873.734 |
2008 | 1740.825 | 2298.645 | 557.82 | 14830.359 |
2009 | 1587.741 | 1983.177 | 395.44 | 14418.738 |
2010 | 1776.595 | 2235.350 | 458.76 | 14783.809 |
The fall in trade deficit in recession may be attributed to a larger fall in imports of consumers and capital goods than in exports. Export is seen as more stable than imports during the recession, as per Table 5.
Concept introduction:
Trade deficit: Trade deficit is the situation where the country imports more goods and services than what they export. It is the situation of negative trade balance, which means that the outflows of capital as payments to the imports are higher than the inflow of capital as revenue for the exports.
GDP (Gross Domestic Product): Gross domestic product refers to the value of total goods and services produced in the given period of time, within the boundaries.
Want to see more full solutions like this?
Chapter 38 Solutions
EBK MODERN PRINCIPLES OF ECONOMICS
- Please help and Solve! (Note: this is a practice problem)arrow_forwardPlease help and thanks! (Note: This is a practice problem!)arrow_forwardUnit VI Assignment Instructions: This assignment has two parts. Answer the questions using the charts. Part 1: Firm 1 High Price Low Price High Price 8,8 0,10 Firm 2 Low Price 10,0 3,3 Question: For the above game, identify the Nash Equilibrium. Does Firm 1 have a dominant strategy? If so, what is it? Does Firm 2 have a dominant strategy? If so, what is it? Your response:arrow_forward
- not use ai please don't kdjdkdkfjnxncjcarrow_forwardAsk one question at a time. Keep questions specific and include all details. Need more help? Subject matter experts with PhDs and Masters are standing by 24/7 to answer your question.**arrow_forward1b. (5 pts) Under the 1990 Farm Bill and given the initial situation of a target price and marketing loan, indicate where the market price (MP), quantity supplied (QS) and demanded (QD), government stocks (GS), and Deficiency Payments (DP) and Marketing Loan Gains (MLG), if any, would be on the graph below. If applicable, indicate the price floor (PF) on the graph. TP $ NLR So Do Q/yrarrow_forward
- Now, let us assume that Brie has altruistic preferences. Her utility function is now given by: 1 UB (xA, YA, TB,YB) = (1/2) (2x+2y) + (2x+2y) What would her utility be at the endowment now? (Round off your answer to the nearest whole number.) 110arrow_forwardProblema 4 (20 puntos): Supongamos que tenemos un ingreso de $120 y enfrentamos los precios P₁ =6 y P₂ =4. Nuestra función de utilidad es: U(x1, x2) = x0.4x0.6 a) Planteen el problema de optimización y obtengan las condiciones de primer orden. b) Encuentren el consumo óptimo de x1 y x2. c) ¿Cómo cambiará nuestra elección óptima si el ingreso aumenta a $180?arrow_forwardPlease draw the graph for number 4 and 5, I appreciate it!!arrow_forward
- not use ai pleasearrow_forwardnot use ai pleasearrow_forward• Prismatic Cards: A prismatic card will be a card that counts as having every suit. We will denote, e.g., a prismatic Queen card by Q*. With this notation, 2.3045 Q would be a double flush since every card is a diamond and a heart. • Wild Cards: A wild card counts as having every suit and every denomination. Denote wild cards with a W; if there are multiple, we will denote them W₁, W2, etc. With this notation, W2 20.30054 would be both a three-of-a-kind (three 2's) and a flush (5 diamonds). If we add multiple wild cards to the deck, they count as distinct cards, so that (e.g.) the following two hands count as "different hands" when counting: W15 5Q and W255◊♡♡♣♣ In addition, 1. Let's start with the unmodified double-suited deck. (a) Call a hand a flush house if it is a flush and a full house, i.e. if all cards share a suit and there are 3 cards of one denomination and two of another. For example, 550. house. How many different flush house hands are there? 2. Suppose we add one wild…arrow_forward
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education





