Question

I. Dollar value of resource extraction activity = $20 billion

II. Dollar value of production activity = $50 billion
II. Dollar value of distribution activity = $70 billion
IV. Dollar value of final output = $140 billion
Gross output for this economy equals

Multiple Choice
A. $270 billion.
B. $140 billion.
C. $280 billion.
D. $260 billion.

Answer 1

The gross output for the economy is calculated by adding the dollar values of resource extraction, production, distribution, and final output activities, which totals to $280 billion. The correct option is C. $280 billion.

Step-by-step explanation:

The student's question involves calculating the gross output for an economy based on provided dollar values of different economic activities. Gross output can be thought of as the total sales from production activities of businesses during a given period, which includes intermediate inputs and the final output.

To calculate the gross output, we sum the value of resource extraction, production, distribution, and final output activities. These are given as:

• Resource extraction activity: $20 billion
• Production activity: $50 billion
• Distribution activity: $70 billion
• Final output: $140 billion

By adding these figures, we get the gross output:

Gross output = Resource extraction + Production activity + Distribution activity + Final output = $20 billion + $50 billion + $70 billion + $140 billion = $280 billion.

Therefore, the correct option is C. $280 billion.

Answer 2

The gross output for the economy is $140 billion, which is the sum of resource extraction ($20 billion), production ($50 billion), and distribution activities ($70 billion). For the reference information about Country A, the Gross Domestic Product (GDP) equals $3,030 billion.

Step-by-step explanation:

The student has asked for the gross output for an economy based on various economic activities. Gross output can be understood as the sum of the dollar value of resource extraction, production activity, and distribution activity. Here, the gross output calculation would be as follows:

• Resource extraction activity = $20 billion
• Production activity = $50 billion
• Distribution activity = $70 billion

Adding these up gives:

$20 billion + $50 billion + $70 billion = $140 billion

This would make option B, $140 billion, the correct answer for the gross output.

In the provided reference information about Country A, the Gross Domestic Product (GDP) is calculated by summing up consumption, investment, government spending, and net exports which is exports minus imports (C+I+G+(X-M)). Applying this formula:

GDP = $2,000 billion + $50 billion + $1,000 billion + ($20 billion - $40 billion)

GDP = $2,000 billion + $50 billion + $1,000 billion + (-$20 billion)

GDP = $3,030 billion