Suppose That in a Given Country in a Given Year,GNP

question 60

Multiple Choice

Suppose that in a given country in a given year,GNP equals $2,000,investment expenditures equal $200,government expenditures equal $150,and the current account surplus equals $50. Consumption expenditures therefore equal

• A) $1,000.
• B) $1,200.
• C) $1,400.
• D) $1,600.

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Definitions:

Lowball Technique

A persuasive strategy where a more attractive offer is initially presented to get an agreement, then terms are made less favorable.

Feigned Scarcity

Feigned scarcity is a marketing strategy wherein the availability of a product is artificially limited to increase demand.

Reciprocity Norm

A social norm that dictates that we should repay, in kind, what another person has provided us, promoting the exchange of goods, services, and favors.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values.