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

---

Definitions:

Disposal

The act of getting rid of an asset through sale, exchange, retirement, or destruction.

Boot

The amount a buyer owes a seller when a fixed asset is traded in on a similar asset.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset up to a specific point in time.

Initial Cost

The purchase price of an asset or the costs associated with acquiring or producing it, before any depreciation or amortization.