The Country of Growpaw Does Not Trade with Any Other

question 442

Multiple Choice

The country of Growpaw does not trade with any other country. Its GDP is $20 billion. Its government purchases $3 billion worth of goods and services each year, collects $6 billion in taxes, and provides $2 billion in transfer payments to households. Private saving in Growpaw is $4 billion. What is investment in Growpaw?

• A)$5 billion
• B)$4 billion
• C)$3 billion
• D)$2 billion

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Definitions:

Scarce Goods

Items that are limited in availability compared to the desires of people to possess them, requiring mechanisms like pricing or rationing to distribute them.

Unlimited Wants

The economic concept that humans have infinite desires or wishes for goods and services, despite having limited resources.

Invention

The creation of a new product or process, often facilitated by the knowledge of engineering and science.

Engineering

The application of scientific, mathematical, and empirical principles to design, develop, and improve structures, machines, and processes.