Calculate the value of net exports.

The correct answer is Option (1) → .32 Lacs

Note: The given answer is as per the official NTA Answer Key. However, net exports work out to a negative figure here, and the options carry only its magnitude, as explained below.

Exports bring spending into the economy and imports take it out, so net exports are exports minus imports. When imports are larger, the figure is negative and the economy has a trade deficit.

Given:

• Exports, X = 1.8 Lacs

• Imports, M = 2.12 Lacs

Working it out:

• Net exports (NX) = Value of Exports − Value of Imports

• NX = 1.8 − 2.12 = −0.32 Lacs

• Imports exceed exports, so this is a trade deficit of 0.32 Lacs; Option (1) is the only option with this magnitude

Note: It seems that there is a mistake in the original NTA paper, which prints the options as plain positive values when net exports here work out to −0.32 Lacs, so that Option (1) should read −.32 Lacs. The question can still be answered, because only one option carries the correct magnitude of 0.32.