In the equation GDP = C + I + G + F, in which F equals net export spending (i.e., total spending on exports minus total spending on imports), imports are subtracted from the other types of expenditures because:
A) imports reduce national welfare.
B) other countries do not import goods from the U.S.
C) it represents a flow of expenditures out of the domestic economy to the rest of the world.
D) the value of imports is difficult to determine due to the fact that they are frequently stated in terms of foreign currency.
C
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Which if the following is a key difference between profit-oriented institutions (such as small businesses) and non-profit institutions (such as governments, hospitals, or schools)? Profit-oriented institutions
A) are usually competitive rather than cooperative. B) have a recognized residual claimant. C) pursue private interests rather than the public interest. D) rely on monetary incentives to secure the cooperation required for their functioning. E) work through market processes.
Which of the following could explain an increase in demand for labor?
a. additional training that increases the productivity of each unit of labor in this market b. an increase in the amount of risk associated with this job c. a decrease in the amount of risk associated with this job d. an improvement in the working conditions associated with this job e. a decline in the working conditions associated with this job