If an Economy Is in Equilibrium When Net Taxes =

question 126

Multiple Choice

If an economy is in equilibrium when net taxes = $50 trillion,saving = $40 trillion,government purchases = $50 trillion,exports = $30 trillion,and imports = $10 trillion,then planned investment spending must equal

• A)zero
• B)$50
• C)$10
• D)$20
• E)the answer is indeterminate

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Definitions:

Monopsonist

A market scenario characterized by the presence of a single buyer and multiple sellers, granting significant pricing power to the buyer.

Marginal Cost

The additional expense incurred from manufacturing an extra unit of a product or service.

Wage Rate

The amount of compensation an employee receives per unit of time or per task performed, often expressed per hour or piece.

Monopsonist

A market situation in which there is only one buyer for a product or service.