Using the Information in the Table Above, What Does GDP

question 26

Multiple Choice

$\begin{array} { l c } \hline { \text { Item } } & \text { Billions of dollars } \\\hline \text { Wages } & 300 \\\text { Consumption expenditure } & 350 \\\text { Interest, rent, and profit } & 50 \\\text { Statistical discrepancy } & 0 \\\text { Government expenditure } & 300 \\\text { Indirect taxes minus subsidies } & 15 \\\text { Net exports of goods and services } & - 11 \\\text { Depreciation } & 15 \\\hline\end{array}$
Using the information in the table above, what does GDP equal?

• A)$350 billion
• B)$365 billion
• C)$380 billion
• D)$650 billion
• E)GDP cannot be calculated without information on the amount of investment.

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Definitions:

International Trade

The exchange of goods, services, and capital between countries and territories, often driven by comparative advantages and specialization.

Comparative Advantage

A principle in international trade that suggests a country or entity should produce and export goods and services for which it has a lower opportunity cost compared to other countries or entities.

Autarky Price

The price of a good or service in a closed economy with no international trade, set by the balance of domestic supply and demand.

World Price

The international market price of a good or service, influenced by global supply and demand conditions.