Author Question: Last year in Candamica, consumption expenditure was 20 billion, interest, rent, and profit were 2.5 ... (Read 57 times)

cmoore54 · **on:** Jun 29, 2018

Last year in Candamica, consumption expenditure was 20 billion, interest, rent, and profit were 2.5 billion, government expenditure on goods and services was 7 billion,

net exports of goods and services was 5 billion, and investment was 2 billion. Hence total expenditure was
A) 24.5 billion.
B) 34.5 billion.
C) 36.5 billion.
D) 34 billion.
E) undetermined without information about imports.

Question 2

The above table shows production points on Sweet-Tooth Land's production possibilities frontier. What is the opportunity cost of one chocolate bar if Sweet-tooth Land moves from point C to point D?

A) 30 cans of cola per chocolate bar
B) 10 cans of cola per chocolate bar
C) 3 cans of cola per chocolate bar
D) 1/3 can of cola per chocolate bar