U.S. Exports Are

question 203

Multiple Choice

U.S. exports are

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

---

Definitions:

Sales Tax

Sales tax is a tax imposed by governments on sales of goods and services, collected by the retailer at the point of sale.

Installation

Installation involves setting up or putting into place a piece of equipment or system, often requiring technical skills and specific procedures.

Equipment Account

An account in financial statements that represents the cost of equipment purchased by a business, excluding any accumulated depreciation.

Land Improvements

An asset account that records improvements made to land; such improvements have a limited life and are subject to depreciation (examples are a driveway or fences).