Refer to the Above Table

question 119

Multiple Choice

Refer to the above table.If an additional lump-sum tax of $20 were imposed, we would expect:

• A)equilibrium GDP to fall by $30.
• B)equilibrium GDP to fall by $20.
• C)equilibrium GDP to fall by $50.
• D)equilibrium GDP to rise by $24.

---

Definitions:

Physical Assets

Tangible resources owned by an individual or business, such as buildings, machinery, land, and equipment, which have intrinsic value and can be used to generate economic benefit.

Profit And Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal quarter or year.

Income Statement

A financial document that reports a company’s revenues and expenses over a specific period, ultimately showing the net profit or loss.

Bundled Pricing

A pricing strategy whereby companies package a set of goods or services together and then sell them for a lower price than if they were to be sold separately.