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Scenario: Sarah Takes Care of Her Son Instead of Sending

Question 172

Multiple Choice

Scenario: Sarah takes care of her son instead of sending him to a day care that charges $12,000 annually.
-Refer to the scenario above.Which of the following will happen if Sarah opens a day care and takes care of five children,in addition to her son,charging $12,000 per year for each child?


A) The country's trade surplus will increase by $12,000.
B) The country's GDP will decrease by $12,000.
C) The country's GDP will increase by $60,000.
D) The country's trade deficit will increase by $2,400.

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