In Calculating GDP, We Must

question 8

Multiple Choice

In calculating GDP, we must

• A) add the value of the goods produced outside of Australia by local firms.
• B) add the market value of imports and subtract the market value of exports.
• C) add the market value of exports and subtract the market value of imports.
• D) exclude net exports of goods and services (NX).
• E) subtract the market value of imports, because these goods are produced in a country other than Australia, and subtract the market value of exports, because these goods are consumed in a country other than Australia.

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Definitions:

Main Effect

The direct influence of an independent variable on a dependent variable in an experimental design.

Simple Effect

The effect of one variable at a specific level of another variable in a factorial experiment.

Interaction Effect

In statistics, the effect that exists when two or more variables combine to affect the outcome of a dependent variable in a way that cannot be simply added.

Main Effect

In experimental design, a main effect is the direct impact of an individual independent variable on a dependent variable, ignoring the effects of other variables.