Ignoring the Government and Foreign Sectors, There Is an Unplanned

question 145

Multiple Choice

Ignoring the government and foreign sectors, there is an unplanned decrease in inventories of $100 billion at the current level of real national income of $20 trillion. From this information, we know that

• A) saving equals $100 billion.
• B) consumption expenditures equal $20 trillion less saving less $100 billion.
• C) planned investment is $100 billion more than planned saving.
• D) planned investment is $100 billion less than planned saving.

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Definitions:

Barriers to Entry

Economic, procedural, regulatory, or technological factors that obstruct or restrict the ability of new competitors to enter and operate in a market or industry.

Interdependent Firms

Companies whose outcomes or performances are mutually influenced by each other's decisions and actions in the market.

Oligopoly

A market structure dominated by a small number of large firms, leading to limited competition and potentially higher prices and profits.

Decision Making

The cognitive process leading to the selection of a course of action among multiple alternatives, fundamental in business and personal contexts.