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Which of the following statements can be inferred from the graph?

1. In all the years shown in graph, the trade deficit is less than the export earning.

2. Export earnings increased in every year between 89-90 and 91-92.

3. In all the years shown in the graph, the earning by exports is less than the expenditure on imports in the preceding year.

  1. 1 only
  2. 2 only
  3. 3 only
  4. 1 and 3 only
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1. In all the years shown in graph, the trade deficit is less than the export earning.

    It is TRUE.

2. Export earnings increased in every year between 89-90 and 91-92.

    In 89-90 export earning is 17 billion dollar

    while in 90-91 & as well as 91-92 export earning is 18.5 billion dollar

    Hence, this statement is FALSE.

3. In all the years shown in the graph, the earning by exports is less than the expenditure on imports in the preceding year.

    This statement is true for the year 87-88 to 93-94

    But in 94-95 the export earning is 24.5 billion dollar while the import earning in the year 93-94 is 23.5 billion dollar

    So, this statement is also FALSE.

∴ Option A) 1 only is the answer.

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