The Figure Given Below Represents the Leakages and Injections in an Economy

question 112

Multiple Choice

The figure given below represents the leakages and injections in an economy.
Figure 10.2
In the figure:
I, I1: Investment;
G: Government spending;
EX, EX1: Exports;
T: Taxes; and
M: Imports.
-Refer to Figure 10.2. Suppose that I+G+EX equals $20 and the economy is in equilibrium. What is the amount of saving when T = $0 and M = $5 at the equilibrium level?

• A) $0
• B) $10
• C) $15
• D) $20
• E) $25

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Definitions:

Split-off Point

The stage in a production process where joint products can be recognized as distinct and separate products.

Split-off Point

The stage in a production process where multiple products become recognizably separate and independent from each other.

Joint Products

Products that are generated together in a production process and cannot be produced independently of each other.

Net Realizable Value

The estimated selling price of an item of inventory less any direct costs of disposal, such as sales commissions; the value of the receivables reduced to the amount that is expected to be collected or realized, computed as accounts receivable less allowance for doubtful accounts.