The table below shows national income and imports.The level of exports is fixed at $300.All figures (in table and questions)are in millions of dollars.
TABLE 22-1
-Refer to Table 22-1.What are the correct values for the level of net exports (a,b,c,and d)at each level of national income?
A)a = $150,b = $50,c = -$50,d = -$150
B)a = -$150,b = -$50,c = $50,d = $150
C)a = $150,b = $250,c = $350,d = $450
D)a = $300,b = $300,c = $300,d = $300
E)not enough data to determine

Question

The table below shows national income and imports.The level of exports is fixed at $300.All figures (in table and questions)are in millions of dollars.
  TABLE 22-1
-Refer to Table 22-1.What are the correct values for the level of net exports (a,b,c,and d)at each level of national income?
A)a = $150,b = $50,c = -$50,d = -$150 
B)a = -$150,b = -$50,c = $50,d = $150 
C)a = $150,b = $250,c = $350,d = $450 
D)a = $300,b = $300,c = $300,d = $300 
E)not enough data to determine

Quizplus · Accepted Answer

To calculate the level of net exports, we need to subtract the level of imports from the level of exports. We know from the table that the level of exports is fixed at $300. So, to find the level of net exports, we just need to subtract the level of imports from $300. 
At a national income of $500, imports are $350. Net exports = $300 - $350 = -$50 
At a national income of $600, imports are $400. Net exports = $300 - $400 = -$100 
At a national income of $700, imports are $450. Net exports = $300 - $450 = -$150 
At a national income of $800, imports are $500. Net exports = $300 - $500 = -$200 
So, the correct values for net exports are (a) -$50, (b) -$100, (c) -$150, and (d) -$200. Answer choice A matches these values.

The Table Below Shows National Income and Imports