Suppose That in a Closed Economy GDP Is Equal to 15,000,government

question 39

Multiple Choice

Suppose that in a closed economy GDP is equal to 15,000,government purchases are equal to 3,000,consumption equals 10,500,and taxes equal 3,500.What are private saving and public saving?

• A)1,500 and -500,respectively
• B)1,500 and 500,respectively
• C)1,000 and -500,respectively
• D)1,000 and 500,respectively

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Definitions:

Marginal Analysis

The comparison of marginal (“extra” or “additional”) benefits and marginal costs, usually for decision making.

Extra Benefits

Additional advantages or services provided beyond the standard or expected, often included in employment contracts, insurance policies, or membership programs.

Extra Costs

Expenses that are not anticipated, often occurring outside of normal or planned operating expenses.

Scarce Resources

Resources that are limited in supply, which can lead to competition for their use or access.