Why Are Exports Added to (Rather Than Subtracted From) the Other

question 177

Multiple Choice

Why are exports added to (rather than subtracted from) the other expenditure components to arrive at GDP using the expenditure method?

• A) because exports account for those goods that were produced in the economy but that were not devoted to domestic consumption, used for domestic investment, or provided as government goods
• B) because exports have a higher profit margin for manufacturers than do similar products sold in domestic markets
• C) because exported goods are not valued properly, due to problems with the purchasing power parity index
• D) because it is only through exporting that we can generate jobs in our own economy

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Definitions:

Belleville Breviary

A highly decorated manuscript containing the texts used in the Liturgy of the Hours, attributed to Jean Pucelle, created in the early 14th century for Jean de Belleville.

Jean Pucelle

A French Gothic-era manuscript illuminator, noted for his contributions to the development of the miniature painting technique and his detailed illustrations in the early 14th century.

Constantinople

Historical city, now Istanbul, Turkey, significant for its strategic location and rich history as the capital of the Byzantine Empire and later the Ottoman Empire.

Architectural Setting

The specific built environment or context within which a building, scene, or narrative takes place, contributing to its aesthetic and functional qualities.