Bill Gates' Recent Purchase of a New Rolls-Royce Automobile Produced

question 89

Multiple Choice

Bill Gates' recent purchase of a new Rolls-Royce automobile produced in Great Britain will:

• A)increase the gross domestic product of the United States.
• B)have no effect on either country's GDP.
• C)decrease Great Britain's GDP.
• D)increase the net exports component of U.S.gross domestic product.
• E)have to be subtracted from the U.S.GDP.

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Definitions:

Public Benefit

A positive outcome or advantage that serves the general population or community at large.

Equilibrium Price

The price at which the quantity of a product demanded by consumers and the quantity supplied by producers are equal.

Government Tax

Required payments to the government, deducted from workers' salaries and company earnings, or applied to the prices of specific items, services, and activities.

Tax Revenue

Consists of the income that a government gains from taxation, which is used to fund public services and obligations.