In the Equation GDP = C + I + G

question 17

Multiple Choice

In the equation GDP = C + I + G + F,in which F equals net export spending (i.e.,total spending on exports minus total spending on imports) ,imports are subtracted from the other types of expenditures because:

• A)imports reduce national welfare.
• B)other countries do not import goods from the U.S.
• C)it represents a flow of expenditures out of the domestic economy to the rest of the world.
• D)the value of imports is difficult to determine due to the fact that they are frequently stated in terms of foreign currency.

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Definitions:

Altruism

The selfless concern for the well-being of others without expecting any reward.

Ethical Theory

A system of thought that explores the nature of morality and the moral choices individuals make.

Moral Development

Refers to the process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, personal beliefs, and experiences.

Direct Consequences

Immediate results or effects that follow an action or decision without any intervening factors or mechanisms.