Question

 

1a: Because it involves the use of money, the entire value of the sale of a used car is counted as part of gross domestic product.

1b: When Net Exports are negative, it means that exports exceeded imports.

1c: By definition of GDP, total wage earnings and interest income must always equal consumption and investment spending, government purchases, and net exports.

Answer 1

1  FALSE

Explanation :

GDP Include The Final Value Of Any Goods And Service. The Goods Which Is Purchased Earlier And After Some Time They Sold It To Other It Was Not Calculated In The GDP Because It Shows Double Counting Value. Used Car Is One Of Those Example When New Car Buy It Included In GDP But after Some Time This Car Used And they Want To Sell It to Other It Would Not Include In GDP

2 FALSE

*Explanation :

Positive Net Export = Export Is Greater Than Import (Export > Import )

Negative Net Export = Export Is Less Than Import

(Export < Import )

The Above Sentence Is False Because Negative Net Export Occur When Imports Exceeded Export. When Countries Import Is Greater Than Countries Export It Means Countries Net Export Is Negative

3 TRUE

*Explanation :

GDP Calculated In Three Ways Income,Expenditure,Production . In Those Three Ways Any Way We Calculate GDP it Shows Same Value Because In County Income.Expenditure And Production Are Equal Because Of The Transaction Circle Is Created it Is A GDP Flow That Indicate The Flow Of Income And Expenditure In Economy. So It Is True That Total Wage Earnings and Interest income Must Always Equal Consumption and Investment Spending, Government Purchases, and net Exports.