Suppose That in a Closed Economy GDP Is Equal to 11,000

question 102

Multiple Choice

Suppose that in a closed economy GDP is equal to 11,000, taxes are equal to 2,500, consumption equals 7,000, and government purchases equal 3,000. What are private saving and public saving?

• A)1,500 and -500, respectively
• B)1,500 and 500, respectively
• C)1,000 and -500, respectively
• D)1,000 and 500, respectively

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Definitions:

Fermenting Department

A specialized section within a manufacturing process where biological fermentation of products occurs, such as in beer or pharmaceutical production.

Conversion Costs

The total expenses of direct labor along with manufacturing overhead, which are spent in transforming raw materials into completed goods.

Conversion Costs

The combined costs of direct labor and manufacturing overhead required to transform raw materials into finished products.

First Department

The initial production stage or department in a manufacturing process where raw materials begin their transformation into final products.