Refer to the Accompanying Data About a Hypothetical Economy (In

question 139

Multiple Choice

$$\begin{array} { | l | r | } \hline \text { Personal Consumption Expenditures } & \$ 4,500 \\\hline \text { Consumption of Fixed Capital } & 150 \\\hline \text { Gross Private Domestic Investment } & 800 \\\hline \text { Government Purchases } & 950 \\\hline \text { Exports } & 65 \\\hline \text { Imports } & 85 \\\hline\end{array}$$ Refer to the accompanying data about a hypothetical economy (in billions of dollars) . How much are net exports of this economy?

• A) +$150 billion
• B) ?$20 billion
• C) +$20 billion
• D) ?$65 billion

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Definitions:

Insurance Expense

The cost incurred by a business for insurance coverage, recognized as an expense over the policy period.

Prepaid Insurance

An asset account that represents insurance premiums paid in advance, which are expensed over the period the insurance coverage pertains to.

Accounts Receivable

Funds that customers owe to a company for products or services provided but not yet compensated for.

Accounts Payable

Money owed by a company to its creditors for goods or services that have been received but not yet paid for.