Post Utme Rhema University 2023 Economics Question 7

Practice objective / multiple choice question 7 from the 2023 Post Utme Rhema University Economics examination.

Post Utme Rhema University 2023 Economics Objective / Multiple Choice
Question 7 POST_UTME_RHEMA_UNIVERSITY • 2023 • ECONOMICS • objective

A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. However, the country also has a significant amount of foreign investment. U\sing the concept of GDP, explain why the country's GDP will increase if it attracts more foreign investment.

Answer Options

Correct Answer A. The country's GDP will increase because foreign investment is a component of GDP.
B. The country's GDP will increase because foreign investment generates a positive externality.
C. The country's GDP will not increase because foreign investment is not a component of GDP.
D. The country's GDP will decrease because foreign investment reduces the opportunity \cost of producing domestic goods.
Correct Answer
A
Correct Option:
The country's GDP will increase because foreign investment is a component of GDP.

About This Question

This is Post Utme Rhema University 2023 Economics Question 7. It is one of the objective questions from the 2023 Post Utme Rhema University Economics examination.

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