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:

Wage Increase

An upward adjustment in the amount of money paid to an employee for their work, typically expressed as a percentage of their current wage.

National Income

The total value of all goods and services produced by a country's economy in a given year, after adjusting for income received from abroad.

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, and health.

Physical Capital

The tangible assets that a company uses in the production of goods or services, such as machinery, buildings, and vehicles.