Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

• A)A change in government purchases affects income.However, the change in income does not affect consumption.
• B)A change in government purchases does not affect income or consumption.
• C)A change in government purchases affects GDP, which is the same as income.The change in income affects consumption.
• D)A change in government purchases affects GDP but not income.
• E)A change in government purchases has no effect on GDP, but it does affect consumption.

Identify points of efficient, under-efficient, and impossible production on the PPC.

Understand the allocation of resources in a two-product economy.

Analyse economic changes through graphical data representation.

Understand the concepts and practices related to the depreciation of assets.

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Definitions:

Confidence Interval

A range of values, derived from sample data, that is likely to contain the population parameter of interest with a specified probability.

Population Mean

The average value of all members of a population.

Standard Deviation

A numerical value calculating how much the dataset deviates from its average, illustrating the breadth of data distribution.

Confidence Interval

A range of values derived from sample data that is likely to contain the true value of an unknown population parameter.