Which of the Following Statements Is INCORRECT

question 268

Multiple Choice

Which of the following statements is INCORRECT?

• A) The sum of government sector and private sector balances equals net exports.
• B) Net exports equals exports minus imports.
• C) Private sector balance equal private investment minus private saving.
• D) The government sector balance equals net taxes minus government expenditures on goods and services.

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Definitions:

Stackelberg Match

A strategic game in economics where one leader firm sets its output first, and then the follower firms set their outputs sequentially.

Cournot's Duopoly Game

A model of competition between two firms, where each firm chooses its output level assuming the output of the rival is fixed.

Stackelberg

Refers to a model of strategic interaction in oligopolistic markets where one leader firm moves first and the other firms follow.

Cournot

A model of duopoly in which two firms assume the output of the other, deciding their own production levels to maximize profit.