Question

If a Canadian citizen buys a smart phone made in China by a Chinese firm, what is the impact on net exports and GDP? O. Canadian net exports and Canadian GDP decrease O b. Canadian net exports decrease, but Canadian GDP is unaffected. . . Canadian net exports are unaffected, but Canadian GDP decreases Od Canadian net exports and Canadian GDP are unaffected.

Answer 1

1) Aswer is B.

Net exports = total exports - total imports.

Imports of canada will increase so net exports will decrease but GDP will remain unaffected.

2) Answer is C. Neve

Productivity of Smith = 30/6 = 5

Dex = 40/10 = 4

Leo = 55/10 = 5.5

Neve = 21/3 = 7

So productivity is highest of Neve.

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