CAT 2025 Slot 3 · DILR · Question 17

CAT 2025 Slot 3 previous year question on Caselet Based DI, with the answer and a step-by-step solution.

Caselet Based DIDATA INTERPRETATION -High LevelMultiple choiceMedium

Set 4: Trade Among Pumpland, Xiland and Cheeseland — this question belongs to a set. Read the full set with all 5 questions →

Three countries — Pumpland (P), Xiland (X) and Cheeseland (C) — trade among themselves and with the (other countries in) Rest of World (ROW). All trade volumes are given in IC (international currency). The following terminology is used:

• Trade balance = Exports - Imports

• Total trade = Exports + Imports

• Normalized trade balance = Trade balance / Total trade, expressed in percentage terms

The following information is known.

1. The normalized trade balances of P, X and C are 0%, 10%, and -20%, respectively.

2. 40% of exports of X are to P. 22% of imports of P are from X.

3. 90% of exports of C are to P; 4% are to ROW.

4. 12% of exports of ROW are to X, 40% are to P.

5. The export volumes of P, in IC, to X and C are 600 and 1200, respectively. P is the only country that exports to C.

What is the trade balance of ROW?

A
0
B
-200
C
100
D
200

Pick an option, then check.

Answer & solution

Answer: Option D

ROW's exports = 2100 (to P 840, to X 252, to ROW 1008).

ROW's imports: from P 200, from X 60% of 1100 = 660 (X exports 40% to P and none to C), from C 32, from ROW 1008. Total = 1900.

Trade balance = 2100 − 1900 = 200.

Shortcut: the ROW → ROW flow appears on both sides and cancels; compare ROW's exports to P and X (1092) with its imports from P, X and C (892): 1092 − 892 = 200.

Hence, the answer is option 4.

CAT 2025 Slot 3 · DILR · Question 17

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