The Next Questions Refer to the Following Hypothetical Economy

question 29

Multiple Choice

The next questions refer to the following hypothetical economy.
A nation produces 1000 units of output. It sells 800 of these to domestic consumers at a price of $4 per unit, and exports the remaining 200 units to countries overseas at a price of $5 per unit. The country also imports 100 units of another good at a price of $6 per unit. There is neither investment nor government expenditure in this economy.
-Aggregate demand for the output of this country is

• A) 4200
• B) 3200
• C) 3600
• D) 2800
• E) 3800

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Definitions:

Work Schedule

The planned hours and days that an employee is expected to work within a given period.

Evaluates

The process of assessing or determining the value, significance, or condition of something, often for the purpose of making decisions or drawing conclusions.

Escalation of Commitment

Is a pattern of behavior in which an individual or group continues to invest in a decision despite evidence of its ineffectiveness or the likelihood of negative outcomes.

Perceptual Defense

The psychological mechanism by which individuals protect themselves from information or stimuli perceived as threatening.