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

question 14

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 the private-sector investment component of GDP?

• A) $0.3 billion.
• B) $0.4 billion.
• C) $0.6 billion.
• D) $0.7 billion.
• E) $0.8 billion.

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Definitions:

Legal

Pertaining to law; relating to the system of rules that are recognized and enforced by a particular country or community.

Moral

Relating to principles of right and wrong behavior and the goodness or badness of human character.

Conservation

The principle that certain properties of objects, like volume or mass, remain the same even when their form or appearance changes, in cognitive development theory.

Quantity

The amount or number of a material or immaterial thing not requiring a unit of measure.