Which of the Following Statements Is True

question 1

Multiple Choice

Which of the following statements is true?

• A)Final goods and services produced abroad by Canadians are part of Canadian GDP.
• B)Final goods and services produced in Canada by foreigners are part of the foreign country's GDP.
• C)Final goods and services produced in Canada by foreigners are part of Canada's GDP.
• D)Final goods and services produced in Canada by foreigners are imports.
• E)Final goods and services produced in Canada by foreigners are exports.

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Definitions:

Earnings Before Taxes

A financial metric indicating the profit earned by a business before the deduction of tax expenses.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term; these include items like rent, salaries, and insurance.

Depreciation Expense

The distribution of a physical asset's cost over its lifespan to account for depreciation or becoming outdated.