If a USCitizen Buys a Television Made in Korea by a Korean

question 51

Multiple Choice

If a U.S.citizen buys a television made in Korea by a Korean firm,then

• A)U.S.net exports decrease and U.S.GDP decreases.
• B)U.S.net exports are unaffected and U.S.GDP decreases.
• C)U.S.net exports are unaffected and U.S.GDP is unaffected.
• D)U.S.net exports decrease and U.S.GDP is unaffected.

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Definitions:

Entrepreneur's Potential Earnings

The forecasted income an entrepreneur can expect from their business venture, taking into account risks and opportunities.

Annual Lease

A contract for the rental of property, typically real estate, that lasts for one year.

Payments to Workers

Payments to workers include salaries, wages, benefits, and other compensation provided to employees in exchange for their labor.

Entrepreneur's Forgone Interest

The potential interest income an entrepreneur sacrifices by investing their own money into their business instead of depositing it for interest.