QUESTION 32 2 pointsSave Answer An economy produces 500000 t

QUESTION 32 2 pointsSave Answer An economy produces 500,000 tables valued at 100 dirhams 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 investment component of GDP? OA. 10 billion dirhams OB. 30 million dirhams OC.25 million dirhams D. 20 million dirhams

Solution

GDP = consumption (C) + investment (I) + government spending (G) + Net Export (NX)

The number of tables left is

500 000 - household (50000) - business(200000) - government(100 000) - foreign (50000) = 100 000

this worth 100 000 * $100 = 10 mil.

   200 000 tables*$100 = 20 mil.

                                   =30mil

so answer is 30 million dirhams option b