The GDP of Ritzland During a Particular Year Was $120,000

question 162

Multiple Choice

The GDP of Ritzland during a particular year was $120,000.If the expenditure on investment was $16,000,the expenditure incurred by the government was $35,000,the value of exports was $10,000,and the value of imports was $22,000,then the expenditure on consumption was ________.

• A) $81,000
• B) $19,000
• C) $37,500
• D) $44,000

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Definitions:

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating how sensitive consumers are to price changes.

Price Discrimination

The strategy of selling the same product or service at different prices to different groups of consumers, based on their willingness or ability to pay.

Profits

The financial gain obtained when revenues from sales exceed the costs associated with production and selling the goods or services.

Perfect Price Discrimination

The price discrimination that results when a monopolist charges each consumer the maximum that the consumer is willing to pay.