In a Closed Economy,which of the Following Equations Reflects Investment

question 193

Multiple Choice

In a closed economy,which of the following equations reflects investment? (Y = GDP,C = Consumption,G = Government purchases,T = Taxes,and TR = Transfers)

• A)Y - C - G
• B)Y - C - T
• C)Y - T + TR
• D)C + G -T

Understand the principles of common property resources and the challenges in managing them efficiently.

Evaluate the effectiveness of pollution control methods considering cost and social impacts.

Recognize the role of government intervention in controlling externalities and promoting environmental protection.

Analyze the impact of sorting requirements in recycling programs on the efficiency and costs of waste management.

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Definitions:

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved, often due to market distortions like taxes or subsidies.

Tax

A compulsory monetary fee or different form of levy placed on a taxpayer by a government body to finance government expenses and various public outlays.

Opportunity Cost

The cost of choosing one option over another, represented by the value of the foregone alternative.

Deadweight Loss

An economic inefficiency occurring when there is an imbalance between supply and demand leading to a loss of economic value, often caused by government interventions like taxes or subsidies.