On the Island Country of Sunshine Where the Unit of Currency

question 108

Multiple Choice

On the island country of Sunshine where the unit of currency is fish, net exports are 50 fish, saving is 250 fish, net taxes are 100 fish, and the government budget deficit is 175 fish. The private sector has a

• A) deficit of 125 fish.
• B) surplus of 125 fish.
• C) deficit of 225 fish.
• D) surplus of 225 fish.

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Definitions:

Derived Demand

Demand that exists not for the good or service itself, but for the goods or services produced by it. This demand is dependent on the demand for another product or service.

Hair Stylist

A professional who specializes in cutting, coloring, and styling hair to improve or maintain a person's appearance.

Salon Owner

An individual who owns and manages a salon, responsible for its operational, financial, and administrative aspects.

Marginal Revenue Product

Marginal Revenue Product measures the additional revenue generated from employing one more unit of a resource.