The GDP can be estimated by adding the value added by all the different sectors of the economy. 6.0 trillion c. 7.0 trillion d. $8.5 trillion 8. Allocative Effic Saving rather than dis-saving occurs at any level of disposable income at which A the consumption … The slope of the consumption function is A less than the slope of the 45° line but not equal to zero B greater than the slope of the 45° line C equal to the slope of the 45° line D equal to zero 3. A country's consumption possibilities frontier can be outside its production possibilities frontier if _____. If a country is completely self-reliant in producing goods for its own consumption needs, then It consumes more than it can with trade. In fact, performance of an economy is judged by the level of its production. When the world price of an internationally traded product is greater than a country’s domestic equilibrium price. b. the country should produce just enough of that good for its own consumption. d. None of the above is correct. overestimate the value of production taking place in the economy. It promotes specialization. It achieves a higher standard of living by exporting. According to a recent report by the EIA , China has increased its coal consumption by more than 2.3 billion tons over the last decade, accounting for a … The GDP is the total value of all intermediate goods produced in the country. I think the other answers here are a bit technical, so let's simplify it a little and explain why exports might exceed 100% of GDP. The same as its production possibilities frontier only if there is no international trade B. $5.5 trillion b. B. Richness or poverty of a country is dependent upon the amount of … When a country has a comparative advantage in producing a certain good, a. the country should import that good. A. By year 2050, more than half of the world’s population is expected to rely in food sourced from other countries. The standard of living or the consumption standard of the people depends, in the ultimate analysis, on the volume and variety of production. . 2. During 2008, a country has consumption expenditures of $3.0 trillion (unit same for the rest), investment expenditures of $1.5, government expenditures of $1.5, exports of $1.0, and imports of $1.5. A country’s consumption possibilities are the same as its production possibilities. Its consumption possibilities equal its production possibilities. Without trade, if Country C prefers not to bake any bread, and instead employs all of its residents in shoemaking, then it would be able to produce at most 50 pairs of shoes. As a result of trade, even if it still bakes no bread, it can obtain 100 pairs of shoes, which is an increase of 50 pairs. 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