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

question 107

Multiple Choice

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

• A)1,500, 1,000, and 500, respectively
• B)1,000, 500, and 1,500, respectively
• C)500, 1,500, and 1,000, respectively
• D)None of the above is correct.

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Definitions:

Comparability

An accounting principle that allows stakeholders to compare financial information across different time periods effectively.

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting that is adopted by most countries.

ASPE

Accounting Standards for Private Enterprises, which are the accounting standards used by private companies in Canada.

Earnings Per Share

A measure of a company's profitability that calculates how much money shareholders would receive for each share they own if all profits were distributed.