In a Certain Economy in 2005,GDP Amounted to $5,000;consumption Amounted

question 186

Multiple Choice

In a certain economy in 2005,GDP amounted to $5,000;consumption amounted to $3,000;government purchases were equal to investment;and the value of imports exceeded the value of exports by $200.It follows that government purchases amounted to

• A)$900.
• B)$1,100.
• C)$1,250.
• D)$1,325.

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Definitions:

Sales

The entire income earned by a company from selling its products or services over a certain time frame.

Net Operating Income

Net Operating Income (NOI) is the total revenue from operations minus operating expenses, excluding taxes and interest.

Break-Even Points

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Break-Even Sales

The amount of revenue required to cover a company's total fixed and variable costs, beyond which the company starts generating a profit.