Scenario 13-1 -Refer to Scenario 13-1

question 398

Multiple Choice

Scenario 13-1. Assume the following information for an imaginary, closed economy. $$\begin{array} { l } \text { GDP } = \$ 120,000 ; \text { consumption } = \$ 70,000 ; \text { private savng } = \$ 9,000 \text {; } \\\text { national saving } = \$ 12,000\end{array}$$
-Refer to Scenario 13-1. This economy's government is running a

• A)budget surplus of $3,000.
• B)budget surplus of $6,000.
• C)budget deficit of $3,000.
• D)budget deficit of $6,000.

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Definitions:

ATC

Average Total Cost, which is the total cost of production divided by the quantity of output produced, including both fixed and variable costs.

Marginal Cost

Marginal Cost is the increase in cost resulting from the production of one additional unit of a good.

Break-even Point

The production level where total revenues equals total expenses, and there is neither profit nor loss.

Perfectly Elastic

Perfectly elastic describes a situation where the quantity demanded or supplied responds infinitely or extremely to changes in price.