Scenario: Sarah Takes Care of Her Son Instead of Sending

question 172

Multiple Choice

Scenario: Sarah takes care of her son instead of sending him to a day care that charges $12,000 annually.
-Refer to the scenario above.Which of the following will happen if Sarah opens a day care and takes care of five children,in addition to her son,charging $12,000 per year for each child?

• A) The country's trade surplus will increase by $12,000.
• B) The country's GDP will decrease by $12,000.
• C) The country's GDP will increase by $60,000.
• D) The country's trade deficit will increase by $2,400.