Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized for You
we will pick new questions that match your level based on your Timer History
Track Your Progress
every week, we’ll send you an estimated GMAT score based on your performance
Practice Pays
we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:
Join our webinar to master GMAT RC Main Point Questions! Learn effective strategies to decipher passage themes and purposes. Senior Verbal Expert- Sunita Singhvi will equip you with tools to navigate complexities and avoid common traps set by the GMAT.
Join us June 30th for 2 weeks of GMAT questions (just 8 per day) to help with your prep and to compete with your fellow GMAT Clubbers for a chance to win a prize fund of $30,000 for you and your team-mates!
More Target Test Prep students are earning 100th percentile GMAT scores. Don’t settle for less when the Target Test Prep course gives you everything you need to score high on the GMAT. Start your 5-day free trial today.
Looking for your GMAT motivation to break through the score plateau? Pragati improved her score by massive 160 points with strategic guidance and hard-work! Find out how personalized mentorship and a strong mindset can turn GMAT struggles into success.
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Select the dropdowns below and click "Submit" to add this question to your Error log.
Difficulty:
95%
(hard)
Question Stats:
32%
(02:54)
correct 68%
(03:17)
wrong
based on 288
sessions
History
Date
Time
Result
Not Attempted Yet
The graph shows the trade value of edible fishery products between the United States and various regions, measured in billions of dollars in 2018.
If in 2018, 20% of U.S. exports to Asia were to India, and 40% of U.S. imports from Asia were from India, then the trade deficit with India accounted for approximately of the U.S. trade deficit with Asia.
The U.S. would have had to its level of edible fishery exports to eliminate the trade deficit.
The graph shows the trade value of edible fishery products between the United States and various regions, measured in billions of dollars in 2018.
If in 2018, 20% of U.S. exports to Asia were to India, and 40% of U.S. imports from Asia were from India, then the trade deficit with India accounted for approximately of the U.S. trade deficit with Asia.
The U.S. would have had to its level of edible fishery exports to eliminate the trade deficit.
U.S. exports to Asia were 3 billion, and 20% of that would be 0.6 billion. U.S. imports from Asia were 10 billion, and 40% of that would be 4 billion. The trade deficit with India, therefore, would be 0.6 billion - 4 billion = -3.4 billion, which is approximately 50% of the total deficit with Asia, which is 7 billion.
Drop-down 2:
The total export from the U.S. is approximately \(1 + 0.1 + 1 + 3 + 0.1 = 5.2\) billion, while the total import is \(4.2 + 3.9 + 2.3 + 10 + 0.4 = 20.8\) billion. Therefore, the U.S. would have had to increase its level of edible fishery exports fourfold to eliminate the trade deficit.
1. Part 1. The question asks us to calculate the percent of trade deficit the US has with Asia that is accounted by India.
2. The trade value of imports and exports in Asia is 10 and 3, respectively. India accounts for \(10 * 0.4 = 4\) and \(3 * 0.2 = 0.6\). Trade deficit is the difference in trade value between exports and imports. So, India accounts for \(\frac{0.6 - 4}{3 - 10} = \frac{-3.4}{-7} \approx 0.5 = 50\%\).
3. Part 2. Eliminating the trade deficit requires the trade value of exports and imports to be the same. The current total trade value of imports is around 4 + 4 + 2 + 10 = 20 and for exports it is around 1 + 1 + 3 = 5. So, to go from 5 to 20, the US needs to increase its level of exports by 4 times.
4. Our answer will be: 50% and "increase 4 times".
Hi Bunuel, For Q2b Why we did not calculate trade deficit itself as given in the graph instead of calculating imports? Trade deficit is ~15billion and exports is 5.2biilion so we need three fold increase in exports.
Hi Bunuel, For Q2b Why we did not calculate trade deficit itself as given in the graph instead of calculating imports? Trade deficit is ~15billion and exports is 5.2biilion so we need three fold increase in exports.
We didn’t just match the deficit, we needed to match total imports with exports to eliminate the deficit.
Exports are ~5.2 billion, and imports are ~20.8 billion, so to eliminate the deficit, exports must increase to match imports.
That means:
5.2 * x = 20.8 x = 4
So a fourfold increase is needed, not just enough to cover the 15.6 billion deficit.