Refer to the Following Figure to Answer the Questions That

question 70

Multiple Choice

Refer to the following figure to answer the questions that follow.

-According to the figure,the amount of private investment after government borrowing is:

• A) $50 billion.
• B) $25 billion.
• C) $100 billion.
• D) $150 billion.
• E) $275 billion.

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Definitions:

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Market Inequalities

Disparities that exist within the economic market system, often reflecting differences in wealth, income, and access to resources.

Opportunity Cost

The forgone benefit that would have been derived by an option not chosen.

Next-best Activity

The alternative that must be forgone to engage in a particular activity, representing the opportunity cost of that decision.