In that economy, what does the $40m services surplus against the $50m goods deficit indicate?

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Question

In that economy, what does the $40m services surplus against the $50m goods deficit indicate?

Accepted Answer

The characteristic shape of a tourism-dependent economy, where services offset a visible deficit — Award 1 mark. It is why quoting the visible balance alone misrepresents such an economy's external position.

Answer

That the country exports no goods at all

Answer

An error, since services cannot exceed goods in value

Answer

The characteristic shape of a tourism-dependent economy, where services offset a visible deficit

Answer

That the current account must be in surplus

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