Last Year in the Country of Nerf Imports Equaled Exports

question 198

Multiple Choice

Last year in the country of Nerf imports equaled exports. Nerfʹs GDP was $500 million, its consumer expenditure was $380 million, and its investment was $20 million. Nerfʹs government expenditure on goods and services were ________.

• A) $500 million
• B) zero
• C) $900 million
• D) $100 million

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Definitions:

Consolidated Income Tax Return

A single income tax return filed by a parent company and its subsidiaries, combining their tax liabilities into one form.

Intra-entity Transfers

Financial or physical transactions conducted internally within a corporation, involving the exchange of resources or assets between departments or subsidiaries.

Voting Stock

Shares of stock that grant the shareholder voting rights in a corporation, typically in matters like electing the board of directors.

Foreign Corporation

A corporation that is incorporated under the laws of a different country from the one in which it primarily operates.