In Examining the National Income Accounts of the Closed Economy

question 29

Multiple Choice

In examining the national income accounts of the closed economy of Nepotocracy you see that this year it had taxes of $100 billion, transfers of $40 billion, and government purchases of goods and services of $80 billion. You also notice that last year it had private saving of $50 billion and investment of $70 billion. In which year did Nepotocracy have a budget deficit of $20 billion?

• A)this year and last year
• B)this year but not last year
• C)last year but not this year
• D)neither this year nor last year

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Definitions:

Management By Objectives (MBO)

A management strategy in which employees and managers collaborate to set, monitor, and achieve specific objectives within an organization.

Management By Objectives (MBO)

A strategic management model where goals are defined for each employee and performance is assessed on the basis of achieving these objectives.

Theory X

A management theory assuming that employees are naturally unmotivated and need strict supervision and control to be productive.

Conceptualization

The process of defining clear, distinct ideas or theories.