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An Economy Produces 1,000,000 Computers Valued at $2,000 Each

Question 20

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An economy produces 1,000,000 computers valued at $2,000 each.Households purchase 200,000 computers,of which 100,000 are imported.Businesses purchase 300,000 domestically-produced computers.The government purchases 300,000 domestically-produced computers,and 100,000 domestically-produced computers are sold abroad.The unsold computers at the end of the year are held in inventory by the computer manufacturers.What is the value of the private-sector investment component of GDP?


A) $0.5 billion.
B) $0.6 billion.
C) $0.8 billion.
D) $0.9 billion.
E) $1.0 billion.

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