Question 30

The country's exports are $200 billion, and its imports are $140 billion.

With a trade surplus of $60 billion, it can be concluded that the value of exports exceeds the value of imports by this amount. Therefore, when exports are $200 billion, and imports are $140 billion, the difference is indeed $60 billion.

A) The country's exports are $200 billion, and its imports are $260 billion.

This option indicates a trade deficit rather than a surplus, as it suggests that imports exceed exports by $60 billion. A trade surplus requires that exports are greater than imports, which is not the case here.

B) The country's exports are $120 billion, and its imports are $180 billion.

This scenario also represents a trade deficit, with imports being $60 billion higher than exports. A surplus cannot exist if imports surpass exports, making this option incorrect.

C) The country's exports are $200 billion, and its imports are $140 billion.

This option accurately describes a situation where exports exceed imports, leading to a trade surplus of $60 billion. The calculation confirms that $200 billion (exports) minus $140 billion (imports) equals $60 billion, making this the correct choice.

D) The country's exports are $110 billion, and its imports are $70 billion.

In this case, exports exceed imports, but the surplus is only $40 billion, not the required $60 billion. Therefore, this option does not satisfy the condition of having a $60 billion trade surplus.

Conclusion

Option C is definitively correct as it accurately reflects the relationship between exports and imports that results in a $60 billion trade surplus. All other options either indicate a trade deficit or do not meet the surplus requirement, demonstrating that they are incorrect choices.