The diagrams below show the import,export,and net export functions for an economy. FIGURE 22-1
-Refer to Figure 22-1.If actual national income in this economy is equal to $1000,then net exports are equal to
A)$90.
B)$200.
C)$250.
D)$375.
E)$400.

Question

The diagrams below show the import,export,and net export functions for an economy.  FIGURE 22-1
-Refer to Figure 22-1.If actual national income in this economy is equal to $1000,then net exports are equal to
A)$90. 
B)$200. 
C)$250. 
D)$375. 
E)$400.

Quizplus · Accepted Answer

From the diagram, we can see that at a national income of $1000, the import function intersects the export function at a point where exports are $350 and imports are $100. Therefore, net exports at a national income of $1000 would be $350 - $100 = $250.

The Diagrams Below Show the Import,export,and Net Export Functions for an Economy