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

Question 54

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An economy produces 500,000 tables valued at $100 each.Households purchase 100,000 tables,of which 50,000 are imported.Businesses purchase 200,000 domestically-produced tables.The government purchases 100,000 domestically-produced tables,and 50,000 domestically-produced tables are sold abroad.The unsold tables at the end of the year are held in inventory by the table manufacturers.What is the value of the private-sector investment component of GDP?


A) $10 billion.
B) $20 million.
C) $25 million.
D) $30 million.
E) $50 million.

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