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:

Total Cost

The complete cost of production that includes both fixed and variable expenses incurred to produce a good or service.

Quantity

The quantity of a physical or intangible asset or service.

Managers

Individuals in an organization responsible for directing and overseeing the work of others to achieve the organization's goals.

Owners

Owners refer to individuals or entities that legally possess an asset, property, or business, holding rights to use, manage, and earn benefits from it.