An Economy Produces Only 1,000,000 Computers Valued at $2,000 Each

question 119

Multiple Choice

An economy produces only 1,000,000 computers valued at $2,000 each.Of these,200,000 are sold to consumers,300,000 are sold to businesses,300,000 are sold to the government,and 100,000 are sold abroad.No computers are imported.The unsold computers at the end of the year are held in inventory by the computer manufacturers.What is the value of GDP?

• A) $0.9 billion.
• B) $1.0 billion.
• C) $1.8 billion.
• D) $2.0 billion.
• E) $3.8 billion.

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Definitions:

Minimum Quantities

The smallest amount or number of items that can be produced, ordered, or maintained to ensure efficiency.

Profit Margins

A financial metric that measures the percentage of profit a company retains from its total revenue after subtracting the cost of goods sold and other expenses.

Maximum Amounts

Maximum Amounts refer to the highest possible quantities or levels that are permissible or achievable under certain conditions.

Slack

The amount of time a project task can be delayed without causing a delay to subsequent tasks or the entire project.