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:

Fundamental Breach

A violation of a contract that is so severe it permits the aggrieved party to terminate the agreement and possibly seek damages.

Minor Aspect

A less significant or minor detail or element of a larger issue or subject.

Anticipatory Breach

Occurs when one party to a contract indicates they will not fulfill their contractual obligations before the due time.

Legal Position

The stance or argument taken by a party in a legal proceeding that is grounded on laws, regulations, or legal principles.