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:

Cash Dividends

Payments made by a corporation to its shareholder members, distributing a portion of its earnings in cash.

Patent

A legal right granted to an inventor, giving them exclusive rights to produce, use, and sell their invention for a certain period of time.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices during a specified period of time.

Residual Dividend Policy

A strategy where dividends are paid to shareholders after all project capital needs are met.