Use the Following to Answer Question 322:
Table: Select Components

question 39

Essay

Use the following to answer question 322:
Table: Select Components of GDP $$\begin{array} { l r } \hline \text { Component of GDP } & \text { Amount } \\\hline \text { Consumption } & \$ 375.56 \\\text { Investment } & 115.68 \\\text { Wages and salaries } & 394.80 \\\text { Rent } & 100.20 \\\text { Government purchases } & 180 \\\text { Interest } & 66 \\\text { Exports } & 100 \\\text { Imports } & 120 \\\hline\end{array}$$
-(Table: Select Components of GDP) Use the information in this table to answer the following questions:
A) What is GDP according to the national spending approach?
B) What is the dollar amount of profit earned in this economy?

• A) What is GDP according to the national spending approach?
• B) What is the dollar amount of profit earned in this economy?

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Definitions:

Mixed Cost

A cost that contains both fixed and variable components and changes with the level of output but not directly in proportion.

Fixed Cost Element

A component of total costs that does not change with the level of output or activity within a certain range.

Fixed Cost

Costs that do not change with the level of manufacturing activity or output, such as rent, salaries, and insurance premiums.

Constant In Total

A term that refers to a cost or expense that remains unchanged in total, regardless of changes in the related level of activity or volume.