Suppose That in a Closed Economy GDP Is 11,000, Consumption

question 126

Multiple Choice

Suppose that in a closed economy GDP is 11,000, consumption is 7,500, and taxes are 2,000. What value of government purchases would make national savings equal to 1,000 and at that value would the government have a deficit or surplus?

• A)2,500, deficit
• B)2,500, surplus
• C)1,000, deficit
• D)1,000, surplus

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Definitions:

Adaptive Behavior

The collection of conceptual, social, and practical skills that individuals have learned to be able to function in their everyday lives.

Mildly Retarded

This term is considered outdated and offensive; it previously referred to individuals showing below-average intellectual functioning and adaptive behavior, now more appropriately referred to as having mild intellectual disability.

Binet-Simon Scale

An early psychological test developed to measure intelligence by assessing verbal abilities, memory, attention, and problem-solving skills.

Scholastic Achievement

Refers to the level of academic success or performance that a student has achieved, often measured through grades and standardized tests.