Scenario 8-3

question 443

Multiple Choice

Scenario 8-3. Assume the following information for an imaginary, open economy.
Consumption = $1,000; investment = $300; net exports = $100;
taxes = $230; private saving = $200; and national saving = $150.
-Refer to Scenario 8-3. For this economy, government purchases amount to

• A) $130.
• B) $180.
• C) $280.
• D) $330.

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Definitions:

Foreign Assembly

The practice of assembling products in a country different from where the components were manufactured, often to save labor costs or avoid import tariffs.

Licensing

involves granting a legally protected right under a trademark, patent, or copyright to use, manufacture, or sell a product.

Domestic Trade Regulations

Rules and guidelines that govern the exchange of goods and services within a country.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.