Scenario 26-1 -Refer to Scenario 26-1

question 64

Multiple Choice

Scenario 26-1. Assume the following information for an imaginary, closed economy.
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$$\begin{array} { | l | l | } \hline \text { GDP } & \$ 170,000 \\\hline \text { Taxes } & \$ 25,000 \\\hline \text { Government Purchases } & \$ 32,000 \\\hline \text { National Saving } & \$ 19,000 \\\hline\end{array}$$
-Refer to Scenario 26-1. For this economy, investment amounts to

• A)$7,000.
• B)$25,000.
• C)$32,000.
• D)$19,000.

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Definitions:

Business Entity Assumption

An accounting principle that treats a business as an entity separate from its owners, meaning its financial transactions are recorded distinctly from those of its owners or other businesses.

Economic Unit

An entity, such as an individual, household, or organization, considered in economic analysis and decision-making.

FASB

Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards in the U.S.

Federal Statutes

Laws passed by the national government of a country that are applicable throughout the country.