Figure 9-13
-Refer to Figure 9-13.With trade,domestic production and domestic consumption,respectively,are
A)600 and 600.
B)600 and 300.
C)300 and 900.
D)600 and 900.

Question

Figure 9-13 
-Refer to Figure 9-13.With trade,domestic production and domestic consumption,respectively,are
A)600 and 600. 
B)600 and 300. 
C)300 and 900. 
D)600 and 900.

Quizplus · Accepted Answer

From the figure, we can see that domestic production is at 300 and domestic consumption is at 900. With trade, the imports are at 300 (the difference between domestic consumption and domestic production). Therefore, total consumption is 900 (domestic consumption) + 300 (imports) = 1200. Total production is 300 (domestic production) + 300 (exports) = 600. Hence, the answer is C.

Figure 9-13 -Refer to Figure 9-13.With Trade,domestic Production and Domestic Consumption,respectively,are