The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050); personal consumption expenditures ($4,800); imports ($370); exports ($240); gross private domestic investment ($1,130). Personal consumption expenditures are approximately what percentage of this economy?
A. 60 percent
B. 65 percent
C. 70 percent
D. 75 percent
C. 70 percent
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Normative statements i. describe how the world is. ii. describe how the world ought to be. iii. depend on people's values and cannot be tested
A) i only B) ii only C) iii only D) ii and iii E) i and iii
Define price discrimination and explain why a monopolist would price discriminate?
What will be an ideal response?
A downward-sloping demand curve is faced by firms:
a. under perfect competition. b. under perfect competition and monopoly. c. in all market structures except monopoly. d. in all market structures except monopolistic competition. e. in all market structures except perfect competition.
Government policies such as price controls, rent controls, and quantity restrictions have the effect of
A. creating excess quantities demanded or excess quantities supplied. B. pushing prices to market clearing levels more rapidly than private market forces. C. promoting the attainment of an unhindered market equilibrium. D. allowing quantity demanded to adjust to equality with aggregate supply.