In a small, closed economy national income (GDP) is $250.00 million for the current quarter. Individuals have spent $150.00 million on the consumption of goods and services. They have paid a total of $25.00 million in taxes and the government has spent $25.00 million on goods and services this quarter. Use this information and the national income identity to answer the following questions.

1. How much does the economy spend on investment? Number million dollars
2. What is national saving in the economy? Number million dollars
3. How are investment and national saving related in an economy like this?

O National saving equals investment
O National saving is always less than investment.
O They are unrelated
O Investment is a component of national saving

The cost of direct labor used in production is recorded as a? a. credit to work-in-process inventory account. b. credit to wages payable. c. credit to manufacturing overhead account. d. credit to wages expense.

Why is following an unrelated diversification strategy especially advantageous in an emerging economy? a. it allows the conglomerate to overcome institutional weaknesses in emerging economies. b. it allows the conglomerate to form a monopoly in emerging economies. c. it allows the conglomerate to use well-defined legal systems in emerging economies. d. it allows the conglomerate to take advantage of strong capital markets in emerging economies.

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.