Refer to the Information Provided in Table 24

question 259

Multiple Choice

Refer to the information provided in Table 24.5 below to answer the question(s) that follow.
Table 24.5
All Numbers are in $ Million
-Refer to Table 24.5. Assuming constant MPC, at income of $1,000 million, consumption is $________ million, and at income of $1,300 million, consumption is $________ million.

• A) 600; 860
• B) 640; 900
• C) 680; 920
• D) 720; 960

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Definitions:

Comparative Advantage

The endowment of a person, enterprise, or nation to output a good or service at a diminished opportunity cost relative to rival entities.

Barriers to Trade

Measures that governments or public authorities introduce to restrict or prevent international trade.

Quota

A government-imposed trade restriction that limits the quantity or monetary value of goods that can be imported or exported during a specific time frame.

Domestic Producers

Companies or individuals that manufacture or produce goods within their own country, as opposed to importing them from abroad.