Suppose That in the Country of Welworth, Most Residents Supply

question 69

Multiple Choice

Suppose that in the country of Welworth, most residents supply factors of production to foreign firms, while producers in Welworth never employ factors owned by residents of other countries. Which of the following statements is true of the economy of Welworth?

• A) Welworth's GDP is greater than its GNP.
• B) Welworth's GDP is less than its GNP.
• C) Both GDP and GNP are about the same in Welworth.
• D) Welworth's GDP exceeds GNP by an amount equal to depreciation plus indirect business taxes.

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Definitions:

Clayton Act

A U.S. antitrust law, enacted in 1914, that prohibits certain actions leading to anti-competitiveness, such as price discrimination, exclusive deals, and mergers that significantly lessen competition.

FTC Act

The Federal Trade Commission Act is a piece of legislation, established in 1914, aimed at preventing unfair or deceptive business practices and promoting competition.

Antitrust Laws

Legislation aimed at preventing monopolies and promoting competition by regulating business practices that might restrict trade or competition.

Monetary Award

A monetary award is a financial sum given to a party, often as compensation for a legal claim or recognition of achievements.