Scenario: In a closed economy without a government, the consumption expenditure equals $5,000 and the investment expenditure equals $2,000.
-Refer to the scenario above.If the population of the economy is 200,the per capita national income is ________.

Question

Quizplus · Accepted Answer

In a closed economy without a government, the national income is the sum of consumption expenditure and investment expenditure. Therefore, national income = $5,000 (consumption) + $2,000 (investment) = $7,000. The per capita national income is the national income divided by the population, which is $7,000 / 200 = $35.

Scenario: in a Closed Economy Without a Government, the Consumption