How Are Exports and Imports Treated When Determining GDP

question 199

Multiple Choice

How are exports and imports treated when determining GDP?

• A)Exports are subtracted,but imports are added.
• B)Both exports and imports are subtracted.
• C)Both exports and imports are added.
• D)Exports are added,but imports are subtracted.
• E)Only exports are considered.

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Definitions:

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenues.

Subsidiary

A company that is controlled by another company, typically through majority share ownership.

Fair Value

The value obtained for offloading an asset or incurred in passing on a liability in a smooth transaction among those active in the market on the evaluation date.

Bonds Payable

Long-term debt securities issued by a company, promising to pay a specified sum of money at a future date.