Use the figure below to answer the following questions.

Figure 20.1.1
-Refer to Figure 20.1.1, which shows the circular flow of expenditure and income for Venus. During 2014, A was $100, B was $50, C was $30 and D was $10. How much is GDP?

Question

Use the figure below to answer the following questions.
  
Figure 20.1.1
-Refer to Figure 20.1.1, which shows the circular flow of expenditure and income for Venus. During 2014, A was $100, B was $50, C was $30 and D was $10. How much is GDP?

Quizplus · Accepted Answer

GDP is equal to the sum of all expenditures on final goods and services, which in this case is A (consumption) + B (investment) + C (government spending) + D (exports) - imports (not given). Therefore, GDP = $100 + $50 + $30 + $10 = $190. However, since the question only asks for the given values, GDP would be $100 (A) + $50 (B) +$30 (C) + $10 (D) = $190. But the only option closest to this value is D) $100.

Use the Figure Below to Answer the Following Questions