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Macroecon GameCube Import Q?


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Old 07-01-2009, 08:50 AM
b2b b2b is offline
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Default Macroecon GameCube Import Q?

A 14-year-old girl living in Victoria, BC, purchases a new GameCube game system at Toys "R" Us for $150. The game is manufactured by the Nintendo Co. in Tokyo. Toys "R" Us pays Nintendo $100 for the game system. The other $50 covers the cost of workers, rent, and profit for Toys "R" Us. Nintendo exchanges the $100 at the First National Bank of Tokyo for 8,000 yen. The First National Bank of Tokyo loans the $100 to the Honda Motor Co., which uses it (and a lot of additional money) to expand its automobile manufacturing facility in Alliston, Ontario. The purchase of the GameCube: A. Increases Canadian imports by $150 B. Increases Canadian imports by $100 C. Decreases Canadian exports by $150 D. Increases Canadian exports by $100I think the answer is B, but I'm not 100% sure. Any help would be greatly appreciated.
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Old 07-01-2009, 08:50 AM
gonorth gonorth is offline
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Default Macroecon GameCube Import Q?

B. Increases Canadian imports by $100Game cube is manufactured in Tokyo and "R" pays $100 for it.
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