A country's exports may be written as equal to:
A) GDP minus consumption minus investment minus government spending.
B) GDP minus consumption of domestic goods and services minus investment of domestic goods and services minus government purchases of domestic goods and services.
C) imports.
D) GDP minus imports.

Question

Quizplus · Accepted Answer

"Exports" refer to the goods and services produced domestically and sold to foreign countries. Therefore, option B represents the correct formula for exports, as it subtracts the consumption, investment, and government spending on domestic goods and services from the GDP, leaving only the value of goods and services that are sold to foreign countries. Options A, C, and D do not accurately represent the calculation of exports.

A Country's Exports May Be Written as Equal To