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

question 20

Multiple Choice

An economy produces 1,000,000 computers valued at $2,000 each.Households purchase 200,000 computers,of which 100,000 are imported.Businesses purchase 300,000 domestically-produced computers.The government purchases 300,000 domestically-produced computers,and 100,000 domestically-produced computers are sold abroad.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) $0.5 billion.
• B) $0.6 billion.
• C) $0.8 billion.
• D) $0.9 billion.
• E) $1.0 billion.

Understand the concept of marginal revenue and how it relates to price.

Evaluate the impact of income changes on the demand for goods.

Understand the concept of complementary and substitute goods in consumer preferences.

Analyze the effects of government interventions on market outcomes.

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Definitions:

Premium

An amount paid for an insurance policy or an amount above the nominal value of a security or investment.

Market Rates

The prevailing interest or exchange rates in the financial markets at any given time.

Premium

The amount paid for an insurance policy or an addition to the standard cost or value of something.

Discount

A deduction from the usual cost of something, or the process of determining the present value of future cash flows by adjusting for the time value of money.