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statuscvo [17]
3 years ago
12

For a closed economy, GDP is $11 trillion, consumption is $7 trillion, taxes are $2.5 trillion and the government runs a surplus

of $1 trillion. What are private saving and national saving?
1. $1.5 trillion and $2.5 trillion, respectively
2. $2.5 trillion and $1.5 trillion, respectively
3. $2.5 trillion and $2.5 trillion, respectively
4. $1.5 trillion and $1.5 trillion, respectively
Business
1 answer:
Alex3 years ago
3 0

Answer:

Option A.

Explanation:

Given information:

GDP = $11 trillion

Consumption = $7 trillion

Taxes = $2.5 trillion

Surplus = $1 trillion

The formula for private saving is

\text{Private saving}=GDP-Tax-Consumption

\text{Private saving}=11-2.5-7

\text{Private saving}=1.5

The formula for national saving is

\text{National saving}=GDP-Consumption-\text{Government purchase}

\text{National saving}=11-7-(2.5-1)

\text{National saving}=11-7-1.5

\text{National saving}=2.5

The private saving and national saving are $1.5 trillion and $2.5 trillion, respectively.

Therefore, the correct option is A.

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<h3>What Is Arbitrage?</h3>

The arbitrage approach, used in foreign exchange trading, allows investors to lock in profits by simultaneously buying and selling the same security, good, or currency on two different marketplaces. By using this strategy, traders can profit from the disparities in pricing for the same asset across the two different regions that are represented on each side of the trade.

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1 year ago
Which highest and best use criterion would require an appraiser to consider the frontage of the site?
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physically possible is the highest and best use criterion that would require an appraiser to consider the frontage of the site.

Criterion is usually a plural noun that refers to a criterion by which a judgment can be made. Its singular form is the norm, but evidence shows that the norm is often used in both singular and plural forms, as are data and agenda, and their lesser-used singular forms datum and agenda. I'm here.

For example, SAT score is the predictor and his GPA in college is the criterion. Regression analysis confirms that there appears to be a strong correlation between SAT scores and his GPA in college. However, a high SAT score does not necessarily mean a high GPA in college.

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8 0
1 year ago
A delivery company spent $3,500 last week upgrading one of its trucks. This week the company is trying to decide if this upgrade
rjkz [21]

Answer:

Sunk cost

Explanation:

The sunken cost is the expense previously incurred that will not be compensated in future. Plus, it's also called past expense.  

The cost at the time of decision-making is not significant and it should be ignored.

In the given question, the $3,500 spent which is not now recovered and hence represents the sunk cost

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3 years ago
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fenix001 [56]

Answer:

threat of new entrants

Explanation:

Based on the information provided within the question it can be said that force that has affected Sasha's business, from Porters five forces was the threat of new entrants. This force refers to the threat that comes from new competitors entering an industry with existing competitors. If the barrier to entry of the market is low/easy for these new companies then it creates a huge threat to the existing company's since it allows them to get established in the market fast and at a low cost.

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3 years ago
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Answer: C. separation of legal ownership and management control

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