The Table Given Below States the Value of the GDP

question 23

Multiple Choice

The table given below states the value of the GDP and the different components of aggregate expenditure for two years.?

-Refer to Table 10.1. What is the level of imports in year 2, if the economy is in equilibrium?

• A) $20
• B) $50
• C) $70
• D) $100
• E) $120

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Definitions:

Direct Materials

Basic substances used explicitly in the production of a particular item, which can be directly linked to its creation.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected cost based on standard prices.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Fixed Manufacturing Overhead

Costs related to manufacturing that do not change with the level of production, such as rent, salaries, and utilities.