-Using the Information in the Table Above, Calculate Gross Domestic

question 161

Multiple Choice

$$\begin{array} { | l | l | } \hline \text { Component } & \begin{array} { l } \text { Amount } \\\text { (billions of } \\\text { dollars) }\end{array} \\\hline \begin{array}{l}\text { Personal consumption } \\\text { expenditure }\end{array} & 3,720 \\\hline \begin{array}{l}\text { Government } \\\text { expenditure }\end{array} & 430 \\\hline \text { Gros investment } & 610 \\\hline \text { Net investment } & 520 \\\hline \text { Exports } & 650 \\\hline \text { Imports } & 720 \\\hline\end{array}$$
-Using the information in the table above, calculate gross domestic product.

• A) $5,130 billion
• B) $5,320 billion
• C) $4,690 billion
• D) $4,760 billion

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Definitions:

Future Costs

Expenses or expenditures that are expected to be incurred in future accounting periods.

Fixed Costs

Regular, constant expenses that a business incurs regardless of the level of goods or services produced.

Direct Materials

The raw materials that are directly used in the manufacturing of a product, which can be directly traced to the product itself.

Direct Labour

The wages and related benefits for workers who are directly involved in the manufacturing or production of goods.