In a Small Economy for 2017, Final Consumption Spending $6,000

question 240

Multiple Choice

In a small economy for 2017, final consumption spending $6,000, inventory investment is $1,200, gross fixed capital formation is $1,500, exports are $2,000, and imports are $1,000.What is gross domestic product in 2017?

• A)$9,700
• B)$9,800
• C)$10,800
• D)$11,700
• E)$15,700

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Definitions:

Operating Cash Flow

Operating Cash Flow is the cash generated from a company's regular business operations, indicating its ability to generate sufficient positive cash flow to maintain and grow its operations.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, recognizing the asset's decline in value over time.

Accounting Break-even

The moment when the sum of all costs equals the total revenue, which means there is no net gain or loss.

Operating Cash Flow

Cash generated by a company’s normal business operations.