An Economy Produces Only 500,000 Tables Valued at $100 Each

Multiple Choice

An economy produces only 500,000 tables valued at $100 each. Of these, 100,000 are sold to consumers, 200,000 are sold to businesses, 100,000 are sold to the government, and 50,000 are sold abroad. No tables are imported. The unsold tables at the end of the year are held in inventory by the table manufacturers. What is the value of the investment component of GDP?

A) $2 billion
B) $10 million
C) $20 million
D) $25 million