In 2014,how Large Were Canadian Government Purchases of Goods and Services

question 11

Multiple Choice

In 2014,how large were Canadian government purchases of goods and services?

• A) larger than consumption,but smaller than investment
• B) larger than investment,but smaller than consumption
• C) smaller than both consumption and investment
• D) larger than both consumption and investment

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Definitions:

Budget Constraints

The limitations on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.

Law of Demand

The principle that, all other factors being equal, as the price of a product decreases, the quantity demanded of the product will increase, and vice versa.

Budget Constraint

An economic model that represents all the combinations of goods and services a consumer can afford given their income and prices of goods.

Labor-Supply Curve

A graphical representation showing the relationship between the wages offered and the number of hours workers are willing to supply.