Carole Grand and Bonnie Lamore Run a Shuttle Service from Western

question 88

Multiple Choice

Carole Grand and Bonnie Lamore run a shuttle service from Western Illinois to the busy Chicago O'Hare airport. Last month, they recorded the following: If 25% of their net income is paid to the government in taxes, what is their net income after taxes?

• A)$1410.00
• B)$1160.00
• C)$682.00
• D)$870.00

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Definitions:

Investment

The expenditure on capital assets that may yield returns in the future, such as stocks, bonds, or physical property.

Price Level

A comprehensive mean of the existing prices for the economy's produced goods and services.

Consumption Spending

Expenditures by households on goods and services, excluding new housing.

Investment Spending

Expenditures on capital goods used to produce goods and services in future periods.