An automobile factory in Michigan uses $100,000 worth of parts purchased from foreign countries along with U.S. inputs to produce 30 cars worth $20,000 each. Twenty of these cars are sold and 10 are left in inventory. How much did these actions add to GDP?
a. $300,000
b. $500,000
c. $600,000
d. $700,000
b
You might also like to view...
When a nation removes restrictions on imported products that nation will
A. experience lower prices and consume higher quantities. B. experience higher prices and consume lower quantities. C. experience higher prices and consume higher quantities. D. experience lower prices and consume lower quantities.
The Chicago Board of Trade promotes liquidity in the futures market by
A) setting prices. B) establishing a price floor. C) allowing the short or the long to renegotiate contract terms. D) standardizing contract terms.
Suppose an economics professor receives a $10,000 royalty check from a foreign publishing company and deposits the amount in a local bank. This transaction would be recorded as:
a. a $10,000 credit entry in the domestic services account. b. a $20,000 debit entry in the domestic capital account. c. a $20,000 debit entry in the domestic capital account. d. a $10,000 credit entry in the domestic capital account. e. a $10,000 debit entry in the domestic services account.
Which of the following is correct concerning the FOMC?
a. the members of the Board of Governors have the majority of the votes b. the New York Federal Reserve Bank District President is always a voting member c. all Federal Reserve Bank presidents attend the meetings d. All of the above are correct.