Suppose That for the Economy of Utopia, We Have the Following

question 34

Multiple Choice

Suppose that for the economy of Utopia, we have the following information for 2018: consumption expenditures = $5,000; wages = $3,500; gross private domestic investment = $1,200; government expenditures = $2,000; exports = $900; imports = $1,100. Using the expenditure approach what would the Gross Domestic Product (GDP) be for Utopia in 2018?

• A) $6,200
• B) $8,000
• C) $8,400
• D) $11,500
• E) $11,900

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Definitions:

Limited Assortments

Retailing strategy where a store offers a small number of products in order to focus on a specific category and reduce costs.

Excess Inventory

Refers to the surplus of products or materials that a business has on hand, exceeding the demand or need, often leading to storage issues or discounted sales.

Full-line Discount Store

Retail outlets that offer a wide variety of merchandise across different categories at lower prices than traditional department stores.

Retail Sales

Transactions in which consumers directly purchase goods or services from a business for personal, family, or household use.