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The image provides an example problem regarding GDP calculation. Here’s a breakdown and solution:

### Problem Summary:
- **Population:** 400
- **Wage Earners:** 100
- **Average Earnings:** $50 per year per wage earner
- **Spending on Local Goods/Services:** $40 per year per wage earner
- **Spending on Imports:** $2.50 per year per wage earner
- **Exports:** $800 worth of goods
- **Government Spending:** All tax revenue spent on infrastructure and schools
- **Industry:** Uranium mining, employs every wage earner, spends $600 annually on new mining equipment
- **Tax Rate:** 10%
  
### GDP Calculation:
Gross Domestic Product (GDP) can be calculated by summing up the following components:
1. **Consumption (C):** Total spending on local goods and services.
2. **Investment (I):** Total spending on investment goods like mining equipment.
3. **Government Spending (G):** Total government expenditures.
4. **Net Exports (NX):** Exports minus imports.

#### Step 1: Consumption (C)
- Total spending on local goods/services = 100 wage earners × $40 = **$4,000**

#### Step 2: Investment (I)
- Spending on mining equipment = **$600**

#### Step 3: Government Spending (G)
- Government collects 10% tax from wage earners: 
  - Total earnings = 100 wage earners × $50 = $5,000
  - Tax Revenue = 10% of $5,000 = **$500**
- Government spending = **$500**

#### Step 4: Net Exports (NX)
- Net Exports = Exports - Imports
  - Total imports = 100 wage earners × $2.50 = **$250**
  - Net Exports = $800 (exports) - $250 (imports) = **$550**

### Final GDP Calculation:
\[ GDP = C + I + G + NX \]
\[ GDP = 4000 + 600 + 500 + 550 = 5,650 \]

**Answer: The GDP of Nombland is $5,650.**

Would you like more details or have any questions? Here are five related questions to explore further:

1. How would GDP change if the tax rate were increased to 15%?
2. What would happen to the GDP if the wage earners decided to save 10% of their earnings instead of spending it all?
3. How would the GDP be affected if the government decided to increase spending by $200?
4.

Nombland is a small island nation. Its population total is 400, and it has 100 wage earners who earn an average of $50 per year. Each wage earner spends $40 per year buying local goods and services and $2.50 buying imports. The island exports a total of $800 worth of goods. The Government tax rate is 10% and all government money is spent on building infrastructure and supporting schools. There is only one industry (uranium mining) on the island and it employs every wage earner. The industry spends $600 each year on new mining equipment. What is the GDP?

Calculate the GDP of Nombland, a small island nation with a population of 400. This problem involves understanding key concepts such as consumption, investment, government spending, and net exports. Suitable for students in Grades 10-12.

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