How is the purchase of a BMW car worth Rs40,000, manufactured entirely in Germany, recorded in Pakistan's GDP accounts?

Natural Resources and the Environment Toward Sustainable Development MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Natural Resources and the Environment Toward Sustainable Development

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Subject
Natural Resources and the Environment Toward Sustainable Developmenteconomics-mcqs › natural-resources-and-the-environment-toward-sustainable-development
Published
30 May 2019
Last updated
28 May 2026

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Explanation

When a foreign-made car is bought in Pakistan, consumption expenditure increases by Rs40,000; however, since the car is imported, net exports decrease by the same amount. Therefore, the correct recording is an increase in consumption and a corresponding decrease in net exports.

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