In the economy of Ukzten in 2010, exports were $500, GDP was $6400, government purchases were $1500, imports were $600, and investment was $2000. What was Ukzten's consumption in 2010?

Question

Quizplus · Accepted Answer

We can use the equation:

GDP = Consumption + Investment + Government Purchases + Net Exports

We are given:

GDP = $6400
Investment = $2000
Government Purchases = $1500
Net Exports = Exports - Imports = $500 - $600 = -$100 (Since imports are greater than exports, net exports is negative)

Substituting these values into the equation, we get:

$6400 = Consumption + $2000 + $1500 - $100

Simplifying:

$6400 = Consumption + $3400

Consumption = $6400 - $3400 = $3000

Therefore, the answer is C) $3000.

In the Economy of Ukzten in 2010, Exports Were $500