If a country's exports are 500 and imports are 650, what will be its net exports?
Answer and explanation
Correct answer: −150
Net exports are calculated using the formula NX = exports − imports. Therefore, NX = 500 − 650 = −150. The negative sign is important: it shows that imports exceed exports by 150. Option A gives only the absolute difference and is not the actual value of net exports.
Frequently asked questions
What is the correct answer to this question?
−150
Why is this the correct answer?
Net exports are calculated using the formula NX = exports − imports. Therefore, NX = 500 − 650 = −150. The negative sign is important: it shows that imports exceed exports by 150. Option A gives only the absolute difference and is not the actual value of net exports.
Which subject and chapter does this question cover?
This is a Class 12 Economics question. Chapter: National Income and Related Aggregates. Topic: Methods of calculating national income - Expenditure Method.
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