Answer the next question on the basis of the following national income data for the economy. All figures are in billions of dollars.Personal consumption expenditures$400Government purchases128Gross private domestic investment88Net exports7Net foreign factor income0Consumption of fixed capital43Taxes on production and imports50Compensation of employees369Rents12Interest15Proprietors' income52Corporate income taxes36Dividends24Undistributed corporate profits22Statistical discrepancy0The gross domestic product for the above economy is ________.
A. $623
B. $609
C. $592
D. $584
Answer: A
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As productive capital goods are established in developing nations
A) developed nations will become less prosperous. B) these countries will experience higher rates of economic growth. C) portfolio investment will be replaced by loans from international aid agencies. D) they will be less likely to engage in international trade.
Which of the following accurately describes the tax treatment of municipal bonds?
A) All income from municipal bonds is tax free. B) Interest is tax free, but unrealized capital gains are taxable. C) Interest is tax free, but realized capital gains are taxable. D) Interest is taxable, but capital gains are tax free.
Pollution arises because
a. the atmosphere is a nonrenewable resource b. the atmosphere is a renewable resource c. of enforceable property rights d. the atmosphere is an open-access resource e. there is no supply of pollution curve
In the short run,
a. new firms may enter a market, but existing firms cannot exit. b. firms may exit a market, but new firms may not enter. c. firms may enter or exit a market. d. firms may neither enter nor exit a market.