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.
c
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Which of the following economists is best known for exploring the application of economic analysis to human resources issues?
A) Edward Lazear B) Alan Krueger C) Claudia Goldin D) David Hammermesh
If a firm makes normal profit, the entrepreneur must earn a wage that
a. is at least as much as he can earn elsewhere b. must be less than he can earn elsewhere c. equals the economic profit generated by the firm d. lowers the opportunity cost of finding alternative work e. is enough for him to live on
Two months ago, the Marbury Shirt company sold 200 shirts at $30 per shirt. Last month the company raised its price to $35 per shirt and sold 200 shirts. Evidently the company experienced a(n):
a. Increase in demand b. Decrease in supply c. Increase in supply d. Decrease in demand
Suppose the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens in the market for autoworkers?
A. The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase. B. The equilibrium wage rate will increase and the equilibrium quantity of labor will decrease. C. The equilibrium wage rate and the equilibrium quantity of labor will both decrease. D. The equilibrium wage rate and the equilibrium quantity of labor will both increase.