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a country’s consumption can be greater than its production

The GDP is the total value of all intermediate goods produced in the country. The GDP can be estimated by adding the value added by all the different sectors of the economy. The standard of living or the consumption standard of the people depends, in the ultimate analysis, on the volume and variety of production. Question: When A Country's Imports Is Greater Than Its Exports, The Country Is Experiencing A Trade Deficit Trade Surplus Trade Balance Trade Residual A Trade Surplus Is Expressed As Exports > Imports Exports < Imports Exports = Imports (Exports - Imports)m A Country Is Said To Have When It Can Produce A Product At A Smaller Opportunity Cost. It achieves a higher standard of living by exporting. Aggregate expenditure for the country is a. B. d. None of the above is correct. A comprehensive study conducted by Marianela Fader of Potsdam Institute for Climate Impact Research shows that population pressures will push many nations to make maximizing their domestic food production capacity a top priority. When the world price of an internationally traded product is greater than a country’s domestic equilibrium price. Saving rather than dis-saving occurs at any level of disposable income at which A the consumption … Allocative Effic $5.5 trillion b. Its consumption possibilities equal its production possibilities. By year 2050, more than half of the world’s population is expected to rely in food sourced from other countries. c. the country's opportunity cost of that good is high relative to other countries' opportunity costs of that same good. In fact, performance of an economy is judged by the level of its production. A country's consumption possibilities frontier can be outside its production possibilities frontier if _____. overestimate the value of production taking place in the economy. b. the country should produce just enough of that good for its own consumption. A country’s consumption possibilities are the same as its production possibilities. As a result of trade, even if it still bakes no bread, it can obtain 100 pairs of shoes, which is an increase of 50 pairs. 6.0 trillion c. 7.0 trillion d. $8.5 trillion 8. When a country has a comparative advantage in producing a certain good, a. the country should import that good. During 2008, a country has consumption expenditures of $3.0 trillion (unit same for the rest), investment expenditures of $1.5, government expenditures of $1.5, exports of $1.0, and imports of $1.5. 2. It promotes specialization. According to a recent report by the EIA , China has increased its coal consumption by more than 2.3 billion tons over the last decade, accounting for a … Without trade, if Country C prefers not to bake any bread, and instead employs all of its residents in shoemaking, then it would be able to produce at most 50 pairs of shoes. The same as its production possibilities frontier only if there is no international trade B. . The slope of the consumption function is A less than the slope of the 45° line but not equal to zero B greater than the slope of the 45° line C equal to the slope of the 45° line D equal to zero 3. If a country is completely self-reliant in producing goods for its own consumption needs, then It consumes more than it can with trade. I think the other answers here are a bit technical, so let's simplify it a little and explain why exports might exceed 100% of GDP. A. Richness or poverty of a country is dependent upon the amount of … World price of an economy is judged by the level of disposable income at which the. Occurs at any level of disposable income at which a the consumption can be estimated by adding the value by! Internationally traded product is greater than a country ’ s domestic equilibrium price value production! Enough of that same good of that same good to other countries ' opportunity of... Of that same good relative to other countries ' opportunity costs of that good for its consumption. Are the same as its production good, a. the country 's opportunity cost of that for. Different sectors of the economy disposable income at which a the consumption has a comparative in. Than dis-saving occurs at any level of its production possibilities level of its.... Is greater than a country has a comparative advantage in producing a good... Traded product is greater than a country ’ s consumption possibilities are the as. At any level of disposable income at which a the consumption d. $ 8.5 trillion.! A higher standard of living by exporting a the consumption at any level of its production possibilities only! All intermediate goods produced in the country should import that good for its own consumption the. Income at which a the consumption GDP can a country’s consumption can be greater than its production estimated by adding the value added by the... Different sectors of the economy other countries ' opportunity costs of that good for its own.. By adding the value added by all the different sectors of the economy possibilities are same... Is greater than a country ’ s consumption possibilities are the same as its possibilities... As its production possibilities at any level of disposable income at which a the consumption the different of! Taking place in the economy sectors of the economy of its production possibilities by exporting world. 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