In the Calculation of GDP by the Expenditure Approach, Exports

question 285

Multiple Choice

In the calculation of GDP by the expenditure approach, exports from the United States must be

• A) subtracted because they are included in the consumption of a foreign country.
• B) ignored because they are not bought by U.S. citizens.
• C) subtracted if they are bought by foreign firms for investment purposes.
• D) added.

---

Definitions:

Procedures for Incorporation

The standardized legal steps and requirements followed to legally form and register a corporation with the state or appropriate authority.

Challenge

A call to engage in a competition or contest.

Corporation

A legal entity separate from its owners, offering limited liability to its shareholders and able to own property and sign contracts.

Close Corporation

A corporation whose shareholders are limited to a small group of persons, often family members.