The Diagrams Below Show the Import,export,and Net Export Functions for an Economy

question 12

Multiple Choice

The diagrams below show the import,export,and net export functions for an economy. FIGURE 22-1
-Refer to Figure 22-1.If actual national income in this economy is equal to $1000,then net exports are equal to

• A)$90.
• B)$200.
• C)$250.
• D)$375.
• E)$400.

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Definitions:

Optimal Consumption

A state where consumers allocate their income in a way that maximizes their utility, given their preferences and the prices of goods and services.

Hot Dog Buns

Bread specifically designed to hold a hot dog, usually served as part of a meal or snack.

Subsidizes Housing

A government support mechanism that helps reduce the cost of housing making it more affordable for low-income individuals.

Lump Sum Transfer

A one-time payment of money or resources, usually not expected to be repaid.