Exhibit 1-1 -Refer to Exhibit 1-1.The Student Whose Study Habits Are Illustrated

question 17

Multiple Choice

Exhibit 1-1
-Refer to Exhibit 1-1.The student whose study habits are illustrated here will maximize the net benefits of studying when she has studied

• A)2 hours
• B)4 hours
• C)6 hours
• D)8 hours

Identify and interpret the key entries in balance of payments tables.

Understand the role and impact of imports and exports on national accounts.

Differentiate between financial account surpluses and deficits.

Recognize the factors that directly alter a nation's balance of trade.

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Definitions:

Consumption

The employment of goods and services by domestic units.

Savings

The portion of disposable income not spent on consumption of goods and services, set aside for future use or for investment.

Disposable Income

The financial resources available to a household for saving and spending after subtracting income taxes.

Consumption

The part of income or the amount of wealth that is used for purchasing goods and services for personal use.