Title: QUIZ: Measuring Exports and Imports in GDP -- GDP Video Explainers
Course: Andria Testing FRE2 > Section: Measuring Exports and Imports in GDP -- GDP Video Explainers

Q: Which of the following is subtracted from the GDP equation?
- Net exports
- Net imports
- Imports
- Exports
A: Imports

Q: Why is “M” subtracted from GDP?
- Importing is a negative cost on the economy to import goods
- Importing is sending goods away to other countries
- To make sure we are only counting goods produced domestically
- To cancel out the exports that are not counted in GDP
A: To make sure we are only counting goods produced domestically

Q: If you buy a car that costs $30,000 and was produced in the United States, but imported $5,000 worth of parts, what is the net effect on the GDP?
- $25,000
- $5,000
- $35,000
- $30,000
A: $25,000

Q: If we import more than we export, the balance of trade is __________.
- positive
- neutral
- negative
- volatile
A: negative