In a Small Economy,consumption Spending in 2012 Is $6,000,government Spending

question 107

Multiple Choice

In a small economy,consumption spending in 2012 is $6,000,government spending is $1,200,gross investment is $1,500,exports are $2,000,and imports are $1,000.What is gross domestic product in 2012?

• A) $9,700
• B) $9,800
• C) $10,800
• D) $11,700

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Definitions:

Capital

Refers to financial resources, machinery, and buildings used for producing goods and services.

Trade-Offs

Decisions made that involve choosing between benefits and drawbacks of different options, reflecting the concept of opportunity cost.

Resources

are assets, materials, or substances that are valuable for their utility in producing goods, providing services, or supporting life.

Esther Duflo

A French-American economist known for her research in development economics and for being the youngest person and the second woman to receive the Nobel Prize in Economic Sciences.