Why Does the Gravity Model Work

question 17

Multiple Choice

Why does the gravity model work?

• A) Large economies became large because they were engaged in international trade.
• B) Large economies have relatively large incomes, and hence spend more on government promotion of trade and investment.
• C) Large economies have relatively larger areas, which raises the probability that a productive activity will take place within the borders of that country.
• D) Large economies tend to have large incomes and tend to spend more on imports.
• E) Large economies tend to avoid trading with small economies.

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Definitions:

Unconstitutionality

Unconstitutionality refers to actions, laws, or policies that are deemed to violate the principles or specific provisions laid out in a country's constitution.

Federal Taxation

The levying of taxes by the federal government to fund national programs and services.

U.S. Constitution

The supreme law of the United States, establishing the framework of government, the distribution of powers, and protecting citizens' rights.

Development of Industries

The process of economic and social transformation that involves the growth and expansion of various sectors within an economy.