Question

42) The gross domestic product of Richland during a particular year was $672,500. If the expenditure on consumption during that year was $220,000, the expenditure on investment was $250,000, the expenditure incurred by the government was $100,000, and exports was $182,000, calculate the value of imports.

42) A) $21,500 B) $40,000 C) $79,500 D) $100,750

43) The expenditure on consumption in Berylia during a particular year was $310,000, the expenditure on investment was $180,000, the expenditure incurred by the government was $75,000, the expenditure of foreign economic agents on domestic products was $80,000, and domestic expenditure on foreign produced goods was $103,000. What is the gross domestic product of Berylia during that year?

43) A) $530,000 B) $479,000 C) $645,000 D) $542,000

A country's unemployment rate fell from 6% to 5% during a year. If its total population, capital stock and output remain unchanged, ________.

170) A) its income per capita will increase B) its income per worker will fall C) its income per capita will fall D) its income per worker will increase

Answer 1

42) GDP = 672500. Consumption C = 220000, Investment I = 250000, and government spending G = 100000, Exports X = 182000. Imports = C + I + G + X – GDP = 220000+250000+100000+182000-672500 = 79500. Option C)

43) Consumption C = 310000, Investment I = 180000, and government spending G = 75000, Exports X = 80000. Imports M = 103000

GDP = C + I + G + X – M = 310000+180000+75000+80000-103000 = 542000. Option D)

170) Income per worker should fall because employment is increased so number of workers is higher. With unchanged output, income per worker should fall. Option B)