The next questions refer to the following hypothetical economy.
A nation produces 1000 units of output. It sells 800 of these to domestic consumers at a price of $4 per unit, and exports the remaining 200 units to countries overseas at a price of $5 per unit. The country also imports 100 units of another good at a price of $6 per unit. There is neither investment nor government expenditure in this economy.
-This country's gross domestic product,as measured by expenditure,is
A) 3600
B) 3900
C) 3700
D) 2500
E) 2700

Question

Quizplus · Accepted Answer

GDP = Consumption + Investment + Government Expenditure + (Exports - Imports)= 800*4 + 0 + 0 + (200*5 - 100*6)= 3200 + 400= 3600

The Next Questions Refer to the Following Hypothetical Economy