If Consumption Expenditures Are $500 Million, Net Investment Is $100

question 75

Multiple Choice

If consumption expenditures are $500 million, net investment is $100 million, depreciation equals
$5 million, imports are $50 million, exports are $55 million, government expenditure on goods and services is $220 million, and government transfer payments are $20 million, then GDP is

• A)$845 million.
• B)$825 million.
• C)$800 million.
• D)$790 million.

Understand how to calculate and interpret inventory turnover.

Calculate and interpret current ratio.

Calculate and interpret working capital.

Understand the computation and significance of the acid-test (quick) ratio.

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Definitions:

Trade Balance

The difference between the monetary value of a nation's exports and imports over a certain period, indicating a surplus if exports exceed imports or a deficit otherwise.

Exports

Goods or services that are produced in one country and sold to buyers in another, contributing to the exporting country's economy.

Imports

Goods and services bought from foreign countries for domestic consumption.

Trade Balance

The difference between a country's exports and imports, indicating whether a country has a surplus or deficit in trade with foreign partners.