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

question 130

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 government purchases of goods and services?

• A) $100 billion
• B) $160 billion
• C) $300 billion
• D) $192 billion

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Definitions:

Premiums

Payments made periodically to an insurance company by policyholders for coverage or to maintain a policy.

Income Recognition

The accounting principle that income should be reported in the fiscal period it is earned, regardless of when it is received.

Property

Items or assets owned by an individual or entity, which can include tangible objects like land or personal items, as well as intangible rights.

Services

Services refer to non-tangible activities provided by one party to another, often for a fee, such as consulting, entertainment, or maintenance.