The market value of domestic production is equal to the total expenditure on domestic agents:
A) plus the expenditure of foreign agents on exports minus gross investment by the foreign firms.
B) plus the expenditure of foreign agents on exports minus domestic expenditure on imports.
C) plus domestic expenditure on imports.
D) plus domestic expenditure on imports minus the expenditure of foreign agents on exports.
B
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According to the factor price equalization theorem, if country A is labor abundant, then if country A initiates international trade
A) wages and rents should fall in A. B) rents and rents should rise in A. C) wages should rise and rents should fall in A. D) wages should fall and rents should rise in A.
Voluntary agreements about cleaning up pollution attempt to
A) internalize externalities. B) internalize private costs. C) externalize social costs. D) externalize private costs.
___________ was an ideal supplement to rice farming in the colonies
a. Indigo b. Tobacco c. Wheat d. Ship building.
The table above gives GDP and expenditures for an economy with no international trade and with lump-sum taxes. All the numbers are billions of dollars. C is consumption expenditure, I is investment, and G is government purchases. If the government decides to increase its purchases by an additional $450 billion, equilibrium GDP increases to
A) $7,250 billion. B) $10,450 billion. C) $5,450 billion. D) $7,450 billion.