Suppose That in a Closed Economy GDP Is Equal to $35,000

question 67

Multiple Choice

Suppose that in a closed economy GDP is equal to $35,000, consumption equal to $16,000, government purchases equal $4,500, and taxes equal $8,000. What are private saving, public saving, and national saving?

• A)$3,500, $11,000, and $14,500, respectively
• B)$19,000, $27,000, and $12,500, respectively
• C)$11,000, $3,500, and $14,500, respectively
• D)$27,000, $19,000, and $12,500, respectively

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Definitions:

Express Warranty

An explicit guarantee from a seller to a buyer regarding the quality, condition, or performance of a product.

Reliance

The act of depending or trusting in something or someone, often in the context of contracts where one party relies on the promises of another.

Reasonable Person

A hypothetical individual who exercises average care, skill, and judgment in conduct and who serves as a comparative standard for determining liability.

Implied Warranty

A legal term referring to guarantees that are not explicitly stated but are assumed in a sale, ensuring that a product is fit for its intended purpose.