The Accompanying Table Is the Before-Tax Consumption Schedule for a

question 15

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Gross Domestic Product (GDP) } & \text { Consumption (C) } \\\hline \$ 0 & \$ 40 \\\hline 100 & 120 \\\hline 200 & 200 \\\hline 300 & 280 \\\hline 400 & 360 \\\hline\end{array}$$ The accompanying table is the before-tax consumption schedule for a closed economy. If a lump-sum tax (the same tax amount at each level of GDP) of $40 is now imposed in this economy, the consumption
Schedule will be

• A) \[\begin{array} { | r | r | }
• \hline \text { GDP } & \text { C } \\
• \hline \$ 0 & \$ 8 \\
• \hline 100 & 88 \\
• \hline 200 & 168 \\
• \hline 300 & 248 \\
• \hline 400 & 320 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | r | r | }
• \hline \text { GDP } & \text { C } \\
• \hline \$ 0 & \$ 0 \\
• \hline 100 & 80 \\
• \hline 200 & 160 \\
• \hline 300 & 240 \\
• \hline 400 & 320 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | }
• \hline \text { GDP } & \text { C } \\
• \hline \$ 0 & \$ 10 \\
• \hline 100 & 90 \\
• \hline 200 & 170 \\
• \hline 300 & 250 \\
• \hline 400 & 310 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | c | }
• \hline \text { GDP } & \text { C } \\
• \hline \$ 0 & \$ 0 \\
• \hline 100 & 60 \\
• \hline 200 & 120 \\
• \hline 300 & 180 \\
• \hline 400 & 240 \\
• \hline
• \end{array}\]

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Definitions:

Broker Commission

A fee paid to a broker for their services, usually a percentage of the transaction value.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Lower Of Cost

A method used in accounting to value and report assets and inventory at the lower of its historical cost or current market value.

Market

A place or mechanism where parties engage in exchange of goods, services, or information.