The Following Are National Income Account Data for a Hypothetical

question 91

Multiple Choice

The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050) ; personal consumption expenditures ($4,800) ; imports ($370) ; exports ($240) ; gross investment ($1,130) .Personal consumption expenditures are approximately what percentage of this economy?

• A)60 percent
• B)65 percent
• C)70 percent
• D)75 percent

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Definitions:

Intangible Assets

Non-physical assets possessed by a company, such as patents, trademarks, and copyrights, that are expected to generate economic benefits.

Financial Information

Data pertaining to the financial status and operations of an entity, including income statements, balance sheets, and cash flow statements.

Net Profit Margin Ratio

A financial metric that calculates the percentage of net income generated from net sales.

Total Asset Turnover

Total asset turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue, calculated by dividing sales by average total assets.