Refer to the Accompanying National Income Data (In Billions of

question 24

Multiple Choice

$$\begin{array} { | l | r | } \hline \text { Consumption of Fixed Capital } & \$ 25 \\\hline \text { Government Purchases } & 315 \\\hline \text { US imports } & 260 \\\hline \text { Personal Taxes } & 45 \\\hline \text { Transfer Payments } & 247 \\\hline \text { US Exports } & 249 \\\hline \text { Personal Consumption Expenditures } & 475 \\\hline \text { Net Foreign Factor Income } & 5 \\\hline \text { Gross Private Domestic Investment } & 300 \\\hline \text { Taxes on Production and Imports } & 245 \\\hline \text { Undistributed Corporate Profits } & 60 \\\hline \text { Social Security Contributions } & 240 \\\hline \text { Corporate Income Taxes } & 65 \\\hline \text { Statistical Discrepancy } & 40 \\\hline\end{array}$$ Refer to the accompanying national income data (in billions of dollars) . National income is

• A) $804 billion.
• B) $940 billion.
• C) $975 billion.
• D) $1,019 billion.

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Definitions:

Direct Foreign Investment

Capital placement by an individual or company from one country into the commercial interests or assets in another nation, by means of initiating business processes or acquiring company assets.

Auto Production Facility

A manufacturing plant where vehicles are assembled from components, typically involving automated processes and a workforce.

Basic Infrastructure

The fundamental facilities and systems serving a country, city, or area, including transportation and communication systems, power plants, and schools.

World Bank

An international finance institution that allocates loans and grants to governments of economically weaker countries for the execution of capital projects.