7. A Toronto gun shop purchases a set of new Henry and Winchester rifles from the United States for $30,000 and sells them to Canadian clients for the same amount. How does this affect Canadian GDP? (A) It increases consumption by $30,000, and thus increases GDP by $30,000. (B) It increases investment by $30,000, and hence raises GDP by $30,000. (C) It reduces GDP by $30,000, since net exports decrease by $30,000. (D) It does not affect Canadian GDP.
7. A Toronto gun shop purchases a set of new Henry and Winchester rifles from the United States for $30,000 and sells them to Canadian clients for the same amount. How does this affect Canadian GDP? (A) It increases consumption by $30,000, and thus increases GDP by $30,000. (B) It increases investment by $30,000, and hence raises GDP by $30,000. (C) It reduces GDP by $30,000, since net exports decrease by $30,000. (D) It does not affect Canadian GDP.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:7. A Toronto gun shop purchases a set of new Henry and Winchester rifles from the
United States for $30,000 and sells them to Canadian clients for the same amount. How
does this affect Canadian GDP?
(A) It increases consumption by $30,000, and thus increases GDP by $30,000.
(B) It increases investment by $30,000, and hence raises GDP by $30,000.
(C) It reduces GDP by $30,000, since net exports decrease by $30,000.
(D) It does not affect Canadian GDP.
8. Consider the following premises:
"Every sigma is a Chad."
“All bugmen and soy boys are simps."
"All Chads are based."
"Cristiano Ronaldo is a Chad."
Based on these premises, which of the following conclusions is logically valid?
(A) Cristiano Ronaldo is a sigma. Poggers.
(B) Cristiano Ronaldo is based.
(C) All Chads are based and sigma.
(D) All simps are soy boys.
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