Imports Have the Same Effect on the Current Size of GDP

question 10

Multiple Choice

Imports have the same effect on the current size of GDP as

• A) exports.
• B) investment.
• C) consumption.
• D) saving.

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Definitions:

Market Supply Curve

A graphical representation showing the total quantity of a good that producers are willing to sell at various price levels in a given market.

Optimal Allocation

The most efficient distribution of resources and production that maximizes the benefits or profits within an economy or specific market.

Government Intervention

Regulatory actions taken by a government to affect or influence a specific sector of its economy, often to correct market failures or promote social welfare.

Allocative Efficiency

Refers to a market situation where resources are apportioned in the most efficient manner, allowing for the optimal combination of goods and services production to meet consumer preferences.