'Trade in services is the sum of service exports and imports divided by the value of GDP, all in current U.S. dollars'. State whether this statement is correct.

True

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False

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Solution

The correct option is A True
That amount gets added to the country's GDP. If a nation exports $80 billion of goods and imports $100 b i l l i o n, i t h a s n e t e x p o r t s o f m i n u s$ 20 billion, and that amount is subtracted from the nation's GDP.That means that no nation wants a negative trade balance.

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Q12. Consider the following statements with respect to Gross Domestic Product (GDP):

1. It is the value added by all the firms in the economy.

2. It is the final value of goods and services produced in the economy.

3. It is the sum of final consumption and investment expenditure by the household, private and government sector and net of exports and imports.

4. It is the income received by the four factors of production.

Select the correct answer using the code given below.

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