Given the Following Economic Data,what Is the Value of Investment

question 218

Multiple Choice

Given the following economic data,what is the value of investment in a closed economy? Y = $10 trillion
C = $5 trillion
TR = $2 trillion
G = $2 trillion

• A)$2 trillion
• B)$3 trillion
• C)$5 trillion
• D)cannot be determined without information on taxes (T)

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Definitions:

Wages

Payments made to workers for their services, usually calculated on an hourly, daily, or piecework basis.

Rents

Payments made for the use of property or land, often reflecting the value derived from its use.

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than others, underpinning international trade.

Comparative Disadvantage

A situation where a country or entity is less efficient at producing goods or services compared to another country or entity.