Scenario 26-2

question 64

Multiple Choice

Scenario 26-2.Assume the following information for an imaginary,closed economy.
GDP = $5 trillion;consumption = $3.1 trillion;
government purchases = $0.7 trillion;and taxes = $0.9 trillion.
-Refer to Scenario 26-2.For this economy,investment amounts to

• A)$0.4 trillion.
• B)$2.1 trillion.
• C)$1.7 trillion.
• D)$1.2 trillion.

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Definitions:

Property Rights

The ability of an individual to own and exercise control over scarce resources.

World Growth Rates

The rate at which the economic output of the world or specific countries increases over a given period of time.

Population

The entire group of individuals living in a particular area or country, or the total number of people within a specified demographic group.

Private Good

A type of good that is both excludable and rival in consumption, meaning access to the good can be limited by a seller and its use by one person diminishes the availability to others.