Use the following to answer question 15: Table: Distances and GDP Country Distan

Question

Use the following to answer question 15:

Table: Distances and GDP

Country

Distance from the United States

GDP

Germany

4,000 miles

       $4 trillion

Norway

4,000 miles

       $0.5 trillion

France

4,000 miles

       $2 trillion

Sweden

4,000 miles

       $1 trillion

15.

(Table: Distances and GDP) According to the gravity equation, which country should be the United States's largest trade partner?

A)

Germany

B)

Norway

C)

France

D)

Sweden

Country

Distance from the United States

GDP

Germany

4,000 miles

       $4 trillion

Norway

4,000 miles

       $0.5 trillion

France

4,000 miles

       $2 trillion

Sweden

4,000 miles

       $1 trillion

Explanation / Answer

""A"" germany

Holding B and GDP2 constant,

Germany is $4.0T/4000=$1B,

Norway is $0.5T/5000=$0.1B,

France is $2T/3000=$0.67B and

Sweden is $1T/5500=$0.18B.

Germany is the largest at $1B

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