An Economy's ________ Is/are Equal to Its ________

question 67

Multiple Choice

An economy's ________ is/are equal to its ________.

• A) consumption; income
• B) expenditure on goods and services; output
• C) expenditure on goods; expenditure on services
• D) investment; government expenditures
• E) taxes; net exports

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Definitions:

Parent Company

A company that has controlling interest in another company or companies, known as subsidiaries.

Subsidiary

A company that is controlled by another company, known as the parent company, through ownership of more than half of its voting stock.

Fixed Assets

Long-term tangible assets used in operation of a business that are unlikely to be converted into cash within a short period.

Consolidated Financial Statements

Financial statements that represent the aggregate financial position and results of operations for a parent company and its subsidiaries as a single economic entity.