Question

Country 1 has a gross domestic product (GDP) of $75 billion. The country has a large public sector, which accounts for $25 billion of spending. Consumer spending and investment spending account for $25 billion and $15 billion respectively. What are the values of Country 1’s imports and exports?

A. Country 1’s imports are worth $20 billion and its exports are worth $30 billion.

B. Country 1’s imports are worth $25 billion and its exports are worth $15 billion.

C. Country 1’s imports are worth $15 billion and its exports are worth $10 billion.

D. Country 1’s imports are worth $10 billion and its exports are worth $25 billion.

Answer 1

Answer:The answer is C

Explanation: GDP is the measure of the value of all goods and services produced in a country in a particular year. In GDP calculation, earning from citizens and foreign investment within the country are counted only. While earning of citizens and their investment abroad are not counted. It is used to measure the economic growth or decline of the country.