Use the following figure, which illustrates the circular flow model, to work Problems 3 and 4.

• During 2008, in an economy

• Flow B was $9 trillion,

• Flow C was $2 trillion,

• Flow D was $3 trillion, and

• Flow E was -$0.7 trillion.

Name the B C D E flows?

• A U.S. market research firm deconstructed an Apple iPod and studied the manufacturers, costs and profits of each of the parts and components. The final results are

• An Apple iPod sells in the United States for $299.

• A Japanese firm, Toshiba, makes the hard disk and display screen, which cost $93.
• Other components produced in South Korea cost $25.
• Other components produced in the United States cost $21.
• The iPod is assembled in China at a cost of $5.
• The costs and profits of retailers, advertisers, and transportation firms in the United States are $75.

• What is Apple's profit?

• Apple's profit on the iPod equals the price of an iPod minus the cost of producing it. The total cost to produce an iPod equals $93 + $25 + $21 + $5 + $75, which equals $219. The price of an iPod is $299, so Apple's profit is $80 per iPod.

• B.Where in the national income and product accounts of the United States, Japan, South Korea, and China are these transactions recorded?

• What contribution does one iPod make to world GDP?