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:

Equity Stake

An equity stake refers to an ownership interest in a company, represented by holding shares of the company's stock, giving the shareholder a claim on its assets and profits.

Women's Business

Enterprises owned and operated by women, often emphasizing issues of representation, entrepreneurship, and the challenges faced by women in the business world.

Debt Financing

Debt Financing involves raising capital by borrowing funds from individuals, banks, or other financial institutions that will be repaid over time with interest.

Equity Financing

Funds invested in new ventures in exchange for part ownership.