Question

The difference between the value of exports and the value of imports of goods of a country in a given period of time is known as by what name?

• A. Balance of Trade
• B. Balance of Payment
• C. Capital Account Deficit
• D. Net Invisibles

Hint:

BoT = goods only. BoP = goods + services + capital. Net Invisibles = services and transfers.

Answer 1

The Correct Option is A

Step 1: Define the terms.
- Balance of Trade (BoT): The monetary value difference between a nation's goods exports and imports.
- Balance of Payments (BoP): A complete record of all economic exchanges (goods, services, capital) with other countries.
- Capital Account Deficit: An imbalance where international capital outflows exceed inflows.
- Net Invisibles: The net balance of services, transfers, and income, excluding merchandise trade.
Step 2: Apply to the question.
The question specifically asks about "exports and imports of goods." This aligns directly with the definition of the Balance of Trade.
Final Answer: \[\boxed{\text{Balance of Trade}}\]