The Following Are National Income Account Data for a Hypothetical

question 91

Multiple Choice

The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050) ; personal consumption expenditures ($4,800) ; imports ($370) ; exports ($240) ; gross investment ($1,130) .Personal consumption expenditures are approximately what percentage of this economy?

• A)60 percent
• B)65 percent
• C)70 percent
• D)75 percent

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Definitions:

Price Elasticity

A measure of how much the demand or supply of a product changes in response to a change in its price.

Lottery Tickets

Certificates or electronic entries that grant the holder a chance to win a prize in a drawing or contest, often governed by state or national lotteries.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with high elasticity indicating sensitivity to price changes.

Supplier

An entity that provides goods or services, typically in exchange for payment.