Question :
51.Considerthreedifferentclosedeconomieswiththefollowingnationalincomestatistics.CountryAhastaxesof$40billion,transfersof$20billion,andgovernmentexpendituresongoodsandservicesof$30billion.CountyBhasprivatesavingsof$60b : 1261801
51.Considerthreedifferentclosedeconomieswiththefollowingnationalincomestatistics.CountryAhastaxesof$40billion,transfersof$20billion,andgovernmentexpendituresongoodsandservicesof$30billion.CountyBhasprivatesavingsof$60billion,andinvestmentexpendituresof$40billion.CountryChasGDPof$300billion,investmentof$90,consumptionof$180billion,taxesof$60billionandtransfersof$20billion.Fromthisinformation,weknowthat
a.countryAhasthelargestgovernmentbudgetdeficit.
b.countryBhasthelargestgovernmentbudgetdeficit.
c.countryChasthelargestgovernmentbudgetdeficit.
d.Thegovernmentbudgetdeficitisequalinallthreecountries.
52.InexaminingthenationalincomeaccountsoftheclosedeconomyofNepotocracyyouseethatthisyearithadtaxesof$100billion,transfersof$20billion,andgovernmentpurchasesofgoodsandservicesof$70billion.Youalsonoticethatlastyearithadprivatesavingof$70billionandinvestmentof$50billion.InwhichyeardidNepotocracyhaveabudgetdeficitof$20billion?
a.thisyearandlastyear
b.thisyearbutnotlastyear
c.lastyearbutnotthisyear
d.neitherthisyearnorlastyear
53.Youhavesomeestimatesofnationalaccountsnumbersforaclosedeconomyforthecomingyear.Underonesetofexpectations,governmentpurchaseswillbe$30billion,transferpaymentswillbe$10billion,andtaxeswillbe$45billion.Underanothersetofexpectations,GDPwillbe$200billion,taxeswillbe$50billion,transferpaymentswillbe$20 billion, consumptionwill be $120million, and investmentwill be $40billion. Based onthese numbers inthefirstcasethereshouldbea
a.$15billionsurplus,andinthesecondcasea$10billionsurplus.
b.$15billionsurplus,andinthesecondcasea$30billiondeficit.
c.$5 billionsurplus,andinthe secondcasea$10billiondeficit.
d.$5 billionsurplus,andinthe secondcasea$30billiondeficit.
54.ThecountryofGrowpawdoesnottradewithanyothercountry.ItsGDPis$20billion.Itsgovernmentpurchases$3billionworthofgoodsandserviceseachyear,collects$4billionintaxes,andprovides$2billionintransferpaymentstohouseholds.PrivatesavinginGrowpawis$4billion.WhatisinvestmentinGrowpaw?
a.$5billion
b.$4billion
c.$3billion
d.$11billion
55.ThecountryofCedarlanddoesnottradewithanyothercountry.ItsGDPis$17billion.Itsgovernmentpurchases$5billionworthofgoodsandserviceseachyearandcollects$6billionintaxes.PrivatesavinginCedarlandis$5billion.ForCedarland,
a.investmentis$6billionandconsumptionis$7billion.
b.investmentis$6billionandconsumptionis$6billion.
c.investmentis$7billionandconsumptionis$7billion.
d.investmentis$7billionandconsumptionis$6billion.
56.ThecountryofYokoviadoesnottradewithanyothercountry.ItsGDPis$20billion.Itsgovernmentcollects$2billion intaxes.Consumption equals$15billionand investmentequals$2 billion.Whatispublic savinginYokovia,andwhatisthevalueofthegoodsandservicespurchasedbythegovernmentofYokovia?
a.-$2billionand$1billion.
b.$1billionand$1billion.
c.-$1billionand$3billion.
d.-$2billionand$3billion.
57.ThecountryofBienmundodoesnottradewithanyothercountry.ItsGDPis$30billion.Itsgovernmentpurchases$5billionworthofgoodsandserviceseachyearandcollects$6billionintaxes.PrivatesavinginBienmundoamountsto$5billion.WhatareconsumptionandinvestmentinBienmundo?
a.$17 billionand$8billion, respectively.
b.$19 billionand$6billion, respectively.
c.$19 billionand$8billion, respectively.
d.$17 billionand$6billion, respectively.
58.Inaclosedeconomy,privatesavingis
a.theamountofincomethathouseholdshaveleftafterpayingfortheirtaxesandconsumption.
b.theamountofincomethatbusinesseshaveleftafterpayingforthefactorsofproduction.
c.theamountoftaxrevenuethatthegovernmenthasleftafterpayingforitsspending.
d.alwaysequaltoinvestment.
59.Inaclosedeconomy,publicsavingistheamountof
a.incomethathouseholdshaveleftafterpayingfortaxesandconsumption.
b.incomethatbusinesseshaveleftafterpayingforthefactorsofproduction.
c.taxrevenuethatthegovernmenthasleftafterpayingforitsspending.
d.spendingthatthegovernmentundertakesinexcessofthetaxesitcollects.
60.Whichof the following isnotalwayscorrectforaclosedeconomy?
a.Nationalsavingequalsprivatesavingpluspublicsaving.
b.Netexportsequalzero.
c.RealGDPmeasuresbothincomeandexpenditures.
d.Privatesavingequalsinvestment.