The following table shows the approximate value of exports and imports for Austr

Question

The following table shows the approximate value of exports and imports for Australia from 2002 through 2006. All values are in billions of dollars. Source: Australian Bureau of Statistics In 2002, Australia ran a trade deficit equal to $12.0 billion . Which of the following statements is correct? Australia ran a trade deficit in 2005. Imports increased each year from 2002 to 2006. Of the years listed, Australia ran its largest trade deficit in 2006. Australia ran consistent trade deficits from 2002 to 2006.

Explanation / Answer

The answer is correct as the Australia ran a trade deficit in 2005.

The formula for calculation of trade deficit is exports minus imports.

Trade deficit means when the imports are higher than exports.

So if you see in 2005, the country had trade deficit of USD16.5 BN ( 190.0 - 206.5)

Second option is wrong as the country had trade surplus in 2003.

Third option is also not correct as the largest deficit was in 2004 for Australia.

Fourth is also wrong as the trade deficit was not consistent in 2002-06.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.