Post Utme Osustech 2018 Economics Question 25

Practice objective / multiple choice question 25 from the 2018 Post Utme Osustech Economics examination.

Post Utme Osustech 2018 Economics Objective / Multiple Choice

Question 25 POST_UTME_OSUSTECH • 2018 • ECONOMICS • objective

A country is experiencing a trade deficit, which is cau\sing a decrease in its GDP. U\sing the concept of national income accounting, explain why the country's GDP might decrease, even if the country is producing more goods and services.

Answer Options

Correct Answer A. The country's GDP is decrea\sing because the country is importing more goods and services than it is exporting.

B. The country's GDP is decrea\sing because the country is producing more goods and services, but the prices of these goods and services are decrea\sing.

C. The country's GDP is decrea\sing because the country is experiencing a decrease in its investment, which is cau\sing a decrease in its GDP.

D. The country's GDP is decrea\sing because the country is experiencing a decrease in its government sp\ending, which is cau\sing a decrease in its GDP.

Correct Answer

Correct Option:

The country's GDP is decrea\sing because the country is importing more goods and services than it is exporting.

About This Question

This is Post Utme Osustech 2018 Economics Question 25. It is one of the objective questions from the 2018 Post Utme Osustech Economics examination.

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