The Table Contains Budget Information for a Hypothetical Economy

question 365

Multiple Choice

$$\begin{array} { | c | c | c | c | } \hline & \begin{array} { c } \text { Government } \\\text { Spending }\end{array} & \text { Tax Revenues } & \text { GDP } \\\hline \text { Year } 1 & \$ 800 & \$ 825 & \$ 4,000 \\\hline \text { Year } 2 & 850 & 850 & 4,200 \\\hline \text { Year } 3 & 900 & 875 & 4,350 \\\hline \text { Year } 4 & 950 & 900 & 4,500 \\\hline \text { Year 5 } & 1,000 & 925 & 4,600 \\\hline\end{array}$$ The table contains budget information for a hypothetical economy. All data are in billions of dollars. In which year is there a balanced budget?

• A) Year 1
• B) Year 2
• C) Year 3
• D) Year 4

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Definitions:

Sugary Treats

Sweet food items, often high in sugar content, considered indulgent or pleasurable to eat.

Rational Decision

A decision-making process based on logical reasoning and analysis of available information to achieve the most desirable outcome.

Behavioral Economists

Economists who study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Systematic Errors

Errors that are consistent and repeatable, often due to flaws in the measurement system or experiment design, affecting the accuracy of results.