U.S. Imports Are

question 205

Multiple Choice

U.S. imports are

• A) not added to U.S. GDP because they are produced abroad
• B) added to U.S. GDP because they are consumed domestically
• C) added to U.S. GDP because they represent an increase in inventories
• D) added to U.S. GDP as government purchases because the government decides what goods may be imported
• E) not added to U.S. GDP because they are intermediate goods

---

Definitions:

Short Run

A period in economics during which at least one input, such as plant size or capital equipment, is fixed and cannot be changed.

Market Price

Market price is the current price at which a good or service can be bought or sold in the marketplace.

Shut-Down Price

The price point at which a firm's total revenue equals its variable costs, below which the firm should cease operations to minimize losses.

Variable Costs

Costs that vary directly with the level of production or output.