Whether the volume of export and import are increased or decreased after 1950.
Answer to Problem 1CQQ
Option “a” is correct.
Explanation of Solution
Option (a):
While comparing the US economy today to that of 1950, as a percentage of
Option (b):
After 1950, as a percentage of GDP, the volume of international trade has increased. Both the volumes of export and import have become higher. Thus, option “b” is incorrect.
Option (c):
As per the percentage of GDP, the volume of import has increased after 1950. Thus, option “c” is incorrect.
Option (d):
Comparing the export after and before 1950, it shows an increment in its volume. After 1950, more trade favorable policies have come into force which helps to increase the volume of export in the economy. Thus, option “d” is incorrect.
Concept introduction:
Export: Export refers to trading of goods and services from one country to another country.
Import: It refers to goods and services that are bought domestically and they are produced in other countries.
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Chapter 13 Solutions
Brief Principles of Macroeconomics - With MindTap
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