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Which of the following situations would MOST LIKELY lead to an overall increase in Australia’s gross domestic product?

A. The government of Australia is worried that the country is too dependent on foreign trade. The government decides that the best way to reduce this dependence is to impose high tariffs on imports in order to protect Australia’s domestic economy.

B. An automobile manufacturing plant in Australia cannot afford to pay for pensions for its workers. In order to cut long-term costs, the company fires one-third of its employees and replaces them with automated systems that are equally efficient.

C. A major airplane manufacturing company based in Australia cannot find enough skilled workers. The company offers to pay for any courses that its employees take toward earning a master’s degree in engineering if they agree to work for the company for at least five years after they earn their degree.

D. A steel manufacturer in Australia is barely making any profits because the cost of Australian iron ore is very high. The manufacturer signs a contract to purchase half of the iron ore it needs from a company in China. The manufacturer continues to produce the same amount of steel but now earns a higher profit.

1 Answer

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Answer: D or B. Most likely D. GDP means overall production profit in a country, so it’s probably D.

Step-by-step explanation:

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