Question

Which of the following statements would be true if the United States exported $3 billion worth of goods and services and imported $5 billion?

It would run a trade deficit of $2 billion.
It would run a trade surplus of $2 billion.
It would run a balance of payments deficit of $2 billion.
It would run a balance of payments surplus of $2 billion.

Answer 1

you have to find the cost of importing or exporting. i think?

Answer 2

this means that the US trade exports only $3billion worth of goods and imports $5 billion of goods. This means that there is a trade deficit in the US worth $2 billion

Answer 3

We know the 2nd and 4th answers are wrong for sure.

Answer 4

ok i see

Answer 5

ya...i agree..i think its the first one too..

Answer 6

first one...alright

Answer 7

whats the difference between trade deficit and balance of payments deficit

Answer 8

not really sure

Answer 9

then its either a or c

Answer 10

The correct answer is c.) "It would run a balance of payments deficit of $2 billion."
A balance of payments deficit basically means that you are spending more than you have in trade/exports. I.E. You are bringing importing more than you export. (value-wise).

Answer 11

~~I may be wrong on that, but I googled the definitions and from what I'm understanding it would be c.

Answer 12

http://en.wikipedia.org/wiki/Balance_of_trade

Answer 13

trade deficit relates only to the import and export.
balance of payments deficit relates to import, export, as well as other monetary factors such as bonds, financial accounts, etc.