Which of the Following Equals Demand in a Closed Economy

question 13

Multiple Choice

Which of the following equals demand in a closed economy?

• A)C + I + G + X
• B)C + I + G + X - IM
• C)C + I + G + IM - X
• D)none of the above

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Definitions:

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used simultaneously by more than one person without reducing its availability to others.

Free Rider

An individual who benefits from resources, goods, or services without paying for the cost of the benefit.

Nonexcludable

Describes a good or service that prevents individuals from being excluded from using it; typically, because it is not feasible or cost-effective to do so.

Inefficiently High Level

A scenario where more resources are used than necessary, leading to waste and inefficiency.