Post Utme Lead City University 2018 Economics Question 34

Practice objective / multiple choice question 34 from the 2018 Post Utme Lead City University Economics examination.

Post Utme Lead City University 2018 Economics Objective / Multiple Choice
Question 34 POST_UTME_LEAD_CITY_UNIVERSITY • 2018 • ECONOMICS • objective

A country's balance of payments is given by the following table:\n\n| Item | Value |\n| --- | --- |\n| Exports | $100 | \n| Imports | $120 | \n| Net factor income from abroad | $20 |\n\nWhat is the balance of payments deficit?

Answer Options

Correct Answer A. \( \text{Balance of payments deficit} = \text{Imports} - \text{Exports} - \text{Net factor income from abroad} = 120 - 100 - 20 = 0 \)
B. \( \text{Balance of payments deficit} = \text{Imports} - \text{Exports} + \text{Net factor income from abroad} = 120 - 100 + 20 = 40 \)
C. \( \text{Balance of payments deficit} = \text{Exports} - \text{Imports} - \text{Net factor income from abroad} = 100 - 120 - 20 = -40 \)
D. \( \text{Balance of payments deficit} = \text{Exports} - \text{Imports} + \text{Net factor income from abroad} = 100 - 120 + 20 = -0 \)
Correct Answer
A
Correct Option:
\( \text{Balance of payments deficit} = \text{Imports} - \text{Exports} - \text{Net factor income from abroad} = 120 - 100 - 20 = 0 \)

About This Question

This is Post Utme Lead City University 2018 Economics Question 34. It is one of the objective questions from the 2018 Post Utme Lead City University Economics examination.

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