Debits Credits Balance-of-Payments Account (Billions of dollars) (Billions of dollars) Merchandise 20 35 Services 35 10 Income Receipts 5 10 Unilateral Transfers 55 25 Total 115 80 Based on the total values of Pagros's debits and credits, there is money flowing out of Pagros to foreign countries than there is flowing into Pagros. This means that Pagros has a deficit in the account. Complete the following table based on the credits and debits presented in the previous table. Term How to Calculate Size of Deficit or Deficit or Surplus Surplus (Billions of dollars) Net Exports Current Account Balance
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Calculate the total debits: Total debits = Merchandise + Services + Income Receipts + Unilateral Transfers Total debits = 20 + 35 + 5 + 55 Total debits = 115 billion dollars Show more…
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In $2001,$ the United Kingdom's economy exported goods worth $£ 192$ billion and services worth another $£ 77$ billion. It imported goods worth $£ 225$ billion and services worth $£ 66$ billion. Receipts of income from abroad were $£ 140$ billion while income payments going abroad were $£ 131$ billion. Government transfers from the United Kingdom to the rest of the world were $£ 23$ billion, while various U.K government agencies received payments of $£ 16$ billion from the rest of the world. a. Calculate the U.K. merchandise trade deficit for 2001. b. Calculate the current account balance for 2001. c. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.
In 2001, the United Kingdom's economy exported goods worth $£ 192$ billion and services worth another E77 billion. It imported goods worth $£ 225$ billion and services worth $£ 66$ billion. Receipts of income from abroad were $£ 140$ billion while income payments going abroad were $£ 131$ billion. Government transfers from the United Kingdom to the rest of the world were $£ 23$ billion, while various U.K government agencies received payments of $£ 16$ billion from the rest of the world. a. Calculate the U.K. merchandise trade deficit for 2001. b. Calculate the current account balance for 2001 . c. Explain how you decided whether payments on foreign investment and government transfers counted on the positive or the negative side of the current account balance for the United Kingdom in 2001.
The current account for a fictitious country is shown in the table below. The balance on the capital and financial account for this country is -$12 billion. CURRENT ACCOUNT (in billions of dollars) (1) Goods exports: 655 (2) Goods imports: (3) Balance on goods: 27 (4) Exports of services: (5) Imports of services: -263 (6) Balance on services: (7) Balance on goods and services: (8) Net investment income: -10 (9) Net transfers: 32 (10) Balance on current account: b. The country has a current account (Click to select)
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