Scenario 18-3

question 308

Multiple Choice

Scenario 18-3.Assume the following information for an imaginary,open economy.
Consumption = $1,000; investment = $300; net exports = $100;
taxes = $230; private saving = $200; and national saving = $150.
-Refer to Scenario 18-3.This economy's government is running a

• A) budget deficit of $50.
• B) budget deficit of $80.
• C) budget surplus of $50.
• D) budget surplus of $80.

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Definitions:

Industrial Revolution

A period of significant technological, socioeconomic, and cultural change, beginning in the 18th century, marked by the transition from manual production methods to machine-based manufacturing processes.

Alienation

A state of disconnection and isolation experienced by an individual or group, resulting from structural changes in society or personal relationships.

Capitalist Economy

An economic system where trade, industry, and the means of production are largely or entirely controlled by private owners for profit.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist whose works form the basis of Marxism.