Post Utme Unilag 2020 Economics Question 7

Practice objective / multiple choice question 7 from the 2020 Post Utme Unilag Economics examination.

Post Utme Unilag 2020 Economics Objective / Multiple Choice
Question 7 POST_UTME_UNILAG • 2020 • ECONOMICS • objective

A country's GDP is calculated as the sum of all final goods and services produced within its borders. If a foreign company produces a good in a host country and sells it to a local consumer, how will this transaction affect the host country's GDP?

Answer Options

Correct Answer A. The transaction will increase the host country's GDP.
B. The transaction will decrease the host country's GDP.
C. The transaction will have no effect on the host country's GDP.
D. The transaction will increase the host country's GDP, but only if the foreign company is a subsidiary of a local firm.
Correct Answer
A
Correct Option:
The transaction will increase the host country's GDP.

About This Question

This is Post Utme Unilag 2020 Economics Question 7. It is one of the objective questions from the 2020 Post Utme Unilag Economics examination.

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