Table 1 shows trade data for an economy that imports fuel and exports software services. Year Exports ($bn) Imports ($bn) 2021 48 52 2022 55 68 2023 63 61 (...

Assessment: Economics 9214 | Paper 2 Mock 01 | Written Paper 2 Subject: Economics - 9214

Question 1 Report

Table 1 shows trade data for an economy that imports fuel and exports software services.

YearExports ($bn)Imports ($bn)
20214852
20225568
20236361

(a) Which year had a trade surplus? [1]
(b) Show the trade balance in 2022. [1]

Answer Details

(a) 2023 had a trade surplus, because exports of $63 billion exceeded imports of $61 billion. [1]

(b) The 2022 trade balance was:

\[\$55\text{ billion}-\$68\text{ billion}=-\$13\text{ billion}\]

This is a $13 billion trade deficit. [1]

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