Question: 1. Explain why buying a foreign car made abroad for $50,000 increases consumption by $50,000 but does not increase GDP. 2. What are the elements

1. Explain why buying a foreign car made abroad for $50,000 increases consumption by $50,000 but does not increase GDP.

2. What are the elements that make up GDP?

3. Explain why the very top athletes or entertainers would be more likely to change countries to reduce their taxes as compared with ordinary middle-class workers?

4. Suppose a country-imposed tariffs on computer chips to protect its chip-making industries. What other types of firms in that economy might object to this policy?

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