The ratio of a country's exports to its total output (GNP or GDP)
A)is known as the index of openness.
B)provides a rough measure of the importance of international trade to that economy.
C)if calculated for the United States would be quite low.
D)All of the above.

Question

Quizplus · Accepted Answer

The ratio of a country's exports to its total output (GNP or GDP) is commonly used to measure the importance of international trade to that economy. This ratio is called the index of openness. If this ratio is low, it indicates that the country is less reliant on foreign trade, while a high ratio implies a greater dependence on trade. This ratio for the United States is relatively low, indicating that the US economy is less dependent on trade than some other countries. Therefore, all of the above options are correct.

The Ratio of a Country's Exports to Its Total Output