The following provides data for an economy in a certain year. Consumption expenditures$50Imports$40Government purchases of goods and services$20Construction of new homes and apartments$30Sales of existing homes and apartments$40Exports$50Government payments to retirees$10Household purchases of durable goods$20Beginning-of-year inventory$10End-of-year inventory$20Business fixed investment$30Given the data, compute the government purchases component of GDP.
A. $40
B. $30
C. $10
D. $20
Answer: D
You might also like to view...
Today, about one out of four legal immigrants arrives in the U.S with experience in a professional occupation
Indicate whether the statement is true or false
For collusion to make sense, the payoff matrix must be a
A. positive-sum game. B. zero-sum game. C. negative-sum game. D. negative-positive-sum game.
Consider the monopoly in the figure below with price regulated at $20 per unit. The deadweight loss under the regulated price is: 
A. $1,350. B. $150. C. $2,300. D. There is insufficient information to compute the deadweight loss at the regulated price.
Which of the following statements about asymmetric information is true?
A. Asymmetric information can only be solved through government intervention. B. Asymmetric information reduces market failures because it makes it easier for individuals to engage in transactions that in the presence of perfect information would take place. C. Asymmetric information occurs when one party to a transaction has relevant information to the transaction that the other party does not have. D. Asymmetric information occurs only in the market for used cars and in the insurance market.