If imports are ₹450 crore and exports are ₹400 crore, what will be the net exports?
Answer and explanation
Correct answer: ₹−50 crore
Net exports are calculated by subtracting imports from exports: Net Exports = Exports − Imports = ₹400 crore − ₹450 crore = −₹50 crore. The negative result indicates a trade deficit because the value of imports is greater than the value of exports. Therefore, option A is correct; ₹50 crore shows only the difference without its economically important negative sign.
Frequently asked questions
What is the correct answer to this question?
₹−50 crore
Why is this the correct answer?
Net exports are calculated by subtracting imports from exports: Net Exports = Exports − Imports = ₹400 crore − ₹450 crore = −₹50 crore. The negative result indicates a trade deficit because the value of imports is greater than the value of exports. Therefore, option A is correct; ₹50 crore shows only the difference without its economically important negative sign.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
