Consumption spending is $4.5 billion, gross private domestic investment is $3 billion, and government expenditures are $2 billion. If GDP is $14 billion, which of the following could be true regarding exports and imports in the economy?
A) Exports are $9 billion, and imports are $6 billion.
B) Exports are $15 billion, and imports are $10.5 billion.
C) Exports are $6 billion, and imports are $8.5 billion.
D) Exports are $4.5 billion, and imports are $2 billion.
B
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Diminishing returns along a production function means that each additional hour of labor employed
A) produces a successively smaller additional amount of real GDP. B) produces a successively larger additional amount of real GDP. C) produces a constant additional amount of real GDP. D) does not produce any additional real GDP. E) forces the real wage rate to rise.
When production reflects consumer preferences, ________ occurs
A) productive efficiency B) allocative efficiency C) equity D) efficient central planning
The goal of the Single European Act (or Europe 1992 initiative) is to
A) develop uniform product standards for all EU countries. B) remove nontariff barriers to trade between EU countries. C) deregulate economic activities in transportation and financial services. D) All of the above.
Suppose the number of medical school graduates continues to increase over the next decade. Which of the following is true?
a. Physicians' salaries must fall. b. Physicians' salaries must rise. c. Physicians' salaries will fall only if the demand for medical services falls. d. Physicians' salaries will fall if the demand for medical services rises more than the supply of physicians rises. e. Physicians' salaries will rise if the demand for medical services rises more than the supply of physicians rises.