Consider a Small Economy with 3 Individuals Where Each Individual

question 11

Multiple Choice

Consider a small economy with 3 individuals where each individual produces $1000 worth of final goods and services. The national income for this economy is

• A)$3000.
• B)less than $3000 if there are taxes in this economy.
• C)less than $3000 if some of the income is saved.
• D)more than $3000 if the individuals are earning profits.
• E)more than $3000 if some of the income is invested.

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Definitions:

Mixers

Devices or software used for blending different audio signals together, often used in music production, live performances, and broadcasting.

Cakes

Baked dessert items typically made from ingredients like flour, sugar, eggs, and butter.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, decreasing as quantity increases.

Range of Output

The difference between the maximum and minimum levels of production output possible for a given firm or industry.