The Country of Hykenia Does Not Trade with Any Other

question 44

Multiple Choice

The country of Hykenia does not trade with any other country.Its GDP is $20 billion.Its government collects $4 billion in taxes and pays out $3 billion to households in the form of transfer payments.Consumption equals $15 billion and investment equals $2 billion.What is public saving in Hykenia,and what is the value of the goods and services purchased by the government of Hykenia?

• A) -$2 billion and $3 billion
• B) $1 billion and $3 billion
• C) -$1 billion and $4 billion
• D) There is not enough information to answer the question.

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Definitions:

Supplies

Items used in the day-to-day operations of a business, typically consumable in nature, such as office supplies, cleaning materials, and manufacturing components.

Accounts Payable

Accounts payable are liabilities of a business that represent its obligations to pay off a short-term debt to its creditors or suppliers.

Service Revenue

The income earned by a company for the services it has provided to its customers.

Normal Starting Balance

Normal Starting Balance refers to the initial amount of money in an account at the beginning of a financial period.