Table 62 Shows Data on the Components of GDP in an an Economy

question 109

Multiple Choice

Table 6.2 shows data on the components of GDP in an economy. Use the table to answer questions .
Table 6-2

-Refer to Table 6-2. What is the value of GDP?

• A) $1,010 billion
• B) $1,060 billion
• C) $950 billion
• D) $210 billion

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Definitions:

Required Rate

This is the minimum expected rate of return on an investment, dictating the least acceptable compensation for investing capital.

Salvage Value

A prediction of what an asset will be worth on the market at the close of its effective life.

Project Life

The duration from the initiation to the completion of a project, encompassing all stages of development, execution, and finalization.

Profitability Index

A ratio or index that measures the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.