Which of the Following Describes How Imports Affect Canadian GDP

question 75

Multiple Choice

Which of the following describes how imports affect Canadian GDP?  

• A) Imports are NOT added to Canadian GDP because they are produced abroad. 
• B) Imports are added to Canadian GDP because they are consumed domestically. 
• C) Imports are added to Canadian GDP because they represent an increase in inventories. 
• D) Imports are NOT added to Canadian GDP because they are intermediate goods.

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Definitions:

Profit

The profit earned when the total income surpasses all the expenditures, costs, and taxes necessary for maintaining the business.

Profit-Maximizing

A strategy or approach taken by firms to achieve the highest possible profit from their operations.

Market Price

The existing rate at which an item or service is offered for buying or selling on the market.

Non-Negative Profit

A profit that is zero or positive, indicating that a business is not losing money.