Scenario 13-2

question 19

Multiple Choice

Scenario 13-2. Assume the following information for an imaginary, closed economy.
GDP = $200,000; consumption = $120,000;
government purchases = $35,000; and taxes = $25,000.
-Refer to Scenario 13-2. For this economy, investment amounts to

• A)$25,000.
• B)$30,000.
• C)$35,000.
• D)$45,000.

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Definitions:

Purchase Discounts

Purchase discounts are reductions in price given by the supplier to the buyer for early payment or payment within a specified period.

Credit Sales

Transactions where the customer purchases goods or services on credit and pays the seller at a later date.

Bank Credit Cards

Payment cards issued by banks that allow cardholders to borrow funds within a pre-approved limit for purchases or cash advances.

Freight-In

The cost associated with transporting raw materials or goods into a facility, typically considered as part of the inventory cost.