An economist tracking a country’s imports and exports finds that one year, the country’s imports total an equivalent of $64,821,824, and its exports total an equivalent of $54,058,726. What is this country’s balance of trade for that year?
Answer
A
trade deficit of $10,763,098
B
trade deficit of $118,880,550
C
trade surplus of $10,763,098
D
trade surplus of $118,880,550
Explanation
Balance of trade is exports minus imports. Here, $54,058,726 − $64,821,824 = −$10,763,098. Because imports exceed exports, the negative balance is a trade deficit of $10,763,098.
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