ECON-1012-C-Introduction to Macroeconomics Course Materials & Test Answers | moodle.uleth.ca

Fact 4.1.2

The components and robots for Toyota auto assembly lines in Canada are built in Japan. Toyota assembles cars for the Canadian market in Ontario.

Refer to Fact 4.1.2. Which of the following statements is correct?

The assembly line components and robots do not appear in Japan's GDP.

The assembly line components and robots appear as consumption expenditure in Canada's GDP.

The assembly line components and robots appear as imports in Canada's GDP.

The assembly line components and robots appear as exports in Canada's GDP.

The assembly line components and robots appear as a negative entry in calculating Japan's GDP.

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Item	Dollars
Compensation of employees	800
Other factor incomes	250
Government expenditure on goods and services	250
Depreciation	240
Investment	400
Personal income taxes net of transfer payments	140
Indirect taxes	120
Net exports	100
Consumption expenditure	600

Item	Dollars
Compensation of employees	800
Other factor incomes	250
Government expenditure on goods and services	250
Depreciation	240
Investment	400
Personal income taxes net of transfer payments	140
Indirect taxes	120
Net exports	100
Consumption expenditure	600

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