The Country of Yokovia Does Not Trade with Any Other

question 26

Multiple Choice

The country of Yokovia does not trade with any other country.Its GDP is $20 billion.Its government collects $2 billion in taxes.Consumption equals $15 billion and investment equals $2 billion.What is public saving in Yokovia,and what is the value of the goods and services purchased by the government of Yokovia?

• A)-$2 billion and $1 billion.
• B)$1 billion and $1 billion.
• C)-$1 billion and $3 billion.
• D)-$2 billion and $3 billion.

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Definitions:

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of interest and taxes.

Mark-up

The amount added to the cost price of goods to cover overhead and profit.

Unit Cost

The cost incurred to produce, store, or acquire one unit of a product or service.

Overhead Costs

Expenses not directly tied to production but necessary for running the business, like rent, utilities, and administrative salaries.