Map Sapling Learning macmillan learning Suppose that an economy consists of only

Question

Map Sapling Learning macmillan learning Suppose that an economy consists of only two individuals. Angelo has $1090 available to spend on goods. He decides to purchase $910 worth of produce from Charlotte in the current quarter. No other economic activity takes place during the current quarter. Using this information, answer the following questions. 1. For the current quarter, what is the economy's income? 2. For the current quarter, what is the economy's expenditure? Number Number 3. In an economy, how are income and expenditure related? O They are equal. Income is greater than o expenditure Income is less than expenditure They are unrelated. O O Previous Give Up & View Solution Check Answer e Next Exit

Explanation / Answer

1. For the current quarter economy's income would be= $910 becuase this much of icome is used to purchase that worth quantity. And only $910 worth of transaction will take place in the economy.

2. Economy's expenditure would be = $910 gain. Because someone income on the one hand would convert into some's expenditureon on the other hand. Meaning that income and expenditure are the two sides of the same coin.

3. Hence, in the backdrop of the above two answers income and expenditure both are equal

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