If Planned Aggregate Expenditures Are $240 Billion, Consumption Is $140

question 139

Multiple Choice

If planned aggregate expenditures are $240 billion, consumption is $140 billion, investment is $70 billion, government spending is $50 billion, there is a

• A) trade deficit of $10 billion.
• B) trade surplus of $20 billion.
• C) trade deficit of $20 billion.
• D) trade balance.

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Definitions:

Economic Profitability

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial success and viability of a venture.

Resource Allocation

The process of assigning available resources in the most efficient way to meet the objectives of an organization or economy.

Resource Markets

Markets where resources (such as labor, capital, and raw materials) that are used to produce goods and services are bought and sold.

Wage Rates

This is the standardized amount of compensation given to employees for their services in a given period, typically expressed per hour or year.