Question

Economics Questions (Please explain how you got the answers)

Question 1:

Question 2:

If an American citizen living in America buys hand sanitizer made in China, which component(s) of the GDP is (are) affected? (Select all that apply) oc

Answer 1

1.

GDP is the production of final goods and services within the boundary of a country in a financial yea

By expenditure method having four main components that are consumption, investment, government spending and net export

From the question it can be clearly seen that Americans buy hand sanitizer made in China it means the main component that will be affected to the GDP will be net export

Since they are importing the sanitizer made in China

So the answer is option NX

2.

In this second case as Amazon is an American company which produces itself hand sanitizer and can be used only by the US consumers

It means it will affect the the consumption component of the GDP as it is more consumed by the consumers residing in thr United States

The correct answer is option Consumption;C