Suppose That in a Closed Economy GDP Is Equal to 11,000,taxes

question 7

Multiple Choice

Suppose that in a closed economy GDP is equal to 11,000,taxes are equal to 1,000,consumption equals 7,500,and government purchases equal 2,000.What is national saving?

• A)-500
• B)500
• C)2,000
• D)None of the above is correct.

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Definitions:

TR > TC

A situation where total revenue (TR) is greater than total costs (TC), indicating a company is making a profit from its operations.

Short Run

A period in which at least one of a firm's inputs is fixed, limiting its capacity to adjust its output levels.

Long Run

A period of time in which all factors of production and costs are variable, allowing firms to adjust all inputs.

Marginal Cost

The cost of producing one additional unit of a good or service.