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

Question

Mayra Cobb

Business

27 August, 13:59

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

+5

Answers (1)

Know the Answer?

Casey Villanueva · Answer 1

D. $2.0 billion

Explanation:

Gross domestic product measures total local production within a country regardless of use to which the product is put.

It is the total value of goods and services produced within a given period of time.

Gross national product on the other hand measures both local production, and production by a countrie's national abroad.

So the calculate GDP = Number of products * Price per unit

= 1,000,000 * 2,000 = $2,000,000,000

= $2 billion