-The Table Above Has Data for a Country?s Government Budget

question 93

Multiple Choice

$$\begin{array} { | l | l | } \hline \text { Component } & \begin{array} { l } \text { Dollars } \\\text { (billion) }\end{array} \\\hline \text { Personal income taxes } & 500 \\\hline \text { Social security taxes } & 400 \\\hline \text { Corporate income taxes } & 150 \\\hline \text { Indirect taxes } & 75 \\\hline \text { Transfer payments } & 1,200 \\\hline \begin{array} { l } \text { Expenditure on goods and } \\\text { services }\end{array} & 225 \\\hline \text { Debt interest } & 75 \\\hline\end{array}$$
-The table above has data for a country?s government budget. Government outlays for the economy equal__________ billion.

• A) $1500
• B) $1425
• C) $1275
• D) $1200

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Definitions:

Weighted Average Method

An inventory costing method that calculates cost of goods sold and ending inventory based on the weighted average cost of all items available for sale.

Inventory Costs

Expenses associated with ordering, storing, and managing inventory, including cost of goods sold, storage, and insurance.

Finished Goods

Rephrased: Completed production items that are ready for sale but haven't yet been sold, reflecting a key category of inventory for manufacturers.

Weighted-Average Method

An inventory costing method that assigns the same average cost to all units available for sale, calculated as the total cost of goods divided by the total number of units available.