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.

Question

Quizplus · Accepted Answer

GDP is the total value of all final goods and services produced within a country's borders in a given time period. In this case, the economy produced 1,000,000 computers valued at $2,000 each, which gives a total value of $2 billion. Since no computers were imported, GDP is equal to the total value of computers produced, which is $2 billion.

An Economy Produces Only 1,000,000 Computers Valued at $2,000 Each