Post Utme Nile University 2023 Economics Question 19

Practice objective / multiple choice question 19 from the 2023 Post Utme Nile University Economics examination.

Post Utme Nile University 2023 Economics Objective / Multiple Choice
Question 19 POST_UTME_NILE_UNIVERSITY • 2023 • ECONOMICS • objective

A country has a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. U\sing the concept of balance of payments, explain why the trade deficit may not be the same as the current account deficit.

Answer Options

Correct Answer A. The trade deficit may not be the same as the current account deficit because the current account deficit includes net factor income.
B. The trade deficit may not be the same as the current account deficit because the current account deficit includes net transfers.
C. The trade deficit may not be the same as the current account deficit because the current account deficit includes net investment income.
D. The trade deficit may not be the same as the current account deficit because the current account deficit includes net income from abroad.
Correct Answer
A
Correct Option:
The trade deficit may not be the same as the current account deficit because the current account deficit includes net factor income.

About This Question

This is Post Utme Nile University 2023 Economics Question 19. It is one of the objective questions from the 2023 Post Utme Nile University Economics examination.

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