When do net exports of goods and services increase? Net exports of goods and services increase when OA. investment increases B. government expenditure on goods and services increases
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- When do net exports of goods and services increase? ... Net exports of goods and services increase when O A. investment increases B. government expenditure on goods and services increases C. exports of goods and services increase and imports of goods and services increase O D. exports of goods and services decrease but imports of goods and services decrease by more than exports decBetween 2017 and 2018, the exports of the X economy decreased by $5 billion and its imports increased by $5 billion. All else equal? By how much has the GDP changed between the two years? Select one: a. The change in net exports will decrease GDP by $5 billion. O b. The change in net exports will decrease GDP by $10 billion. C. d. The change in net exports will increase GDP by $5 billion. O e. The decrease in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.In the GDP equation, business spending is referred to as: O Consumption Investment O Government O Net Exports
- Which of these items will increase the level of national income? O a. Higher gross output b. Lower net factor income from abroad O c. Higher intermediate consumption O d. Higher depreciationThe University of Chicago, a privately-owned school, is currently building a new hospital. This will be classified in U.S. GDP as because O consumption; it-will provide medical services to consumers O net exports; most construction workers are foreigners O government purchases; the construction constitutes government expenditure O investment; it increases the capital stockItem Consumption expenditure. Investment Government expenditure on goods and services Exports of goods and services Imports of goods and services 8. Based on the data in the table, what does GDP equal? O $11,183 billion O $11.023 billion O $11.103 billion O $12.393 billion Billions of Dollars 8180 1520 1403 1290 1370
- Item Personal consumption expenditure Government expenditure on goods and services Net taxes Gross private domestic investment Imports of goods and services Exports of goods and services Millions of dollars 80 30 35 20 10 20 Use the information in the table above to calculate the value of net exports. O $10 million $30 million $0 -$10 millionQuestion 4 If Chinese consumers decrease their demand for apples from New Zealand, then (other things being equal) China's: OA Imports and net exports fall O B. Exports and net exports fall OC Exports fall and net exports rise OD. Imports fall and net exports riseUnder the expenditure categories to measure GDP, why are net exports (exports minus imports) included instead of just exports? Select one: a. GDP is a measure of all final goods and services purchased by American citizens around the world. O b. The imports include goods that were produced with intermediate goods made by American firms. O c. The values of C, I and G include spending on all final goods and services, including imports, and these imports must be subtracted out. O d. The government wants to ignore income that Americans spend on foreign-made products.
- Which of the following statements is true about GDP as a measure of a country's economic healt? Select one: O a. It does not include the services produced in a country O b. It includes profits from companies' overseas operations O c. It does not include profits earned by foreign companies within the country being measured O d. It essentially takes into account the concept of GDP in relation to population O e. It measures only those goods and services made within a countryOne key difference between national income and net domestic product is Select one: O a net domestic product only includes the net additions to the economy's stock of capital while national income does not O b. net domestic product represents income that is available to individuals while national income does not. Oc. net domestic product includes indirect business taxes and transfers while national income does not. Od net domestic product does not include income earned by the factors of production while national income does.Ford, an American-owned company, operates a factory in Mexico. The value of the output produced in this factory is counted O in neither U.S. nor Mexico GDP. O in both U.S. and Mexico GDP. O only in Mexico GDP O only in U.S. GDP.
