The table below shows a section of the national accounts for a small country in 2018

Economics Nov 28, 2020

The table below shows a section of the national accounts for a small country in 2018. Answer the question that follows using the information provided in the table.

Consumption expenditure 9 800

Government expenditure 3 500

Depreciation 500

Exports 2 200

Imports 1 900

Gross capital formation (investment) 2 500

Primary income payments 300

Primary income receipts 200

The value of Gross Domestic Product (GDP) is: (4 marks)

A 16 100

B 19 900

C 16 600

D 15 600

Expert Solution

The correct answer is 16100.

GDP = Consumption expenditure + Government expenditure + Gross capital formation (Investment) + Exports - Imports

GDP = 9800 + 3500 + 2500 + 2200 - 1900

GDP = 16100

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