From the information provided in Source 1 calculate the Balance of Payments for March. (i) Total exports for the month of March 2017 rose to €11 billion. At the same time, the value of total imports for the month of March fell to €5.8 billion. (ii) State whether it is a surplus or a deficit. Show your workings.

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From the information provided in Source 1 calculate the Balance of Payments for March - Leaving Cert Business - Question A - 2018

Question A

From the information provided in Source 1 calculate the Balance of Payments for March. (i) Total exports for the month of March 2017 rose to €11 billion. At the sam... show full transcript

Worked Solution & Example Answer:From the information provided in Source 1 calculate the Balance of Payments for March - Leaving Cert Business - Question A - 2018

Step 1

From the information provided, calculate the Balance of Payments for March.

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Answer

To calculate the Balance of Payments, we use the formula:

$\text{Balance of Payments} = \text{Total Exports} - \text{Total Imports}$

Substituting the given values:

Total Exports: €11 billion
Total Imports: €5.8 billion

Therefore:

$\text{Balance of Payments} = 11 - 5.8 = 5.2 \text{ billion}$

The Balance of Payments is €5.2 billion.

Step 2

State whether it is a surplus or a deficit.

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Answer

Since the Balance of Payments is positive (€5.2 billion), it indicates a surplus.

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