Question

An economy produces 100 donuts, of which 80 are consumed in the country and20 exported. The price of a donut is $1. The residents of this economy like to pair the donuts with apple cider. They drink 3 gallons of apple cider, imported from abroad at $5 a gallon. There is a teacher who educates children at the public school and makes $4. There is also a tax collector, who collects taxes amounting to $8. The government's budget is balanced, and thus, the $8 in tax revenue is spent on the $4 teacher's salary and the tax collector's salary, which is also $4. In the national accounts, Which is correct? A. Consumption is $95 B. Government purchases of goods and services is $8 C.net exports is $5 D.all of the above

          An economy produces 100 donuts, of which 80 are consumed in the country and20 exported. The price of a donut is $1. The residents of this economy like to pair the donuts with apple cider. They drink 3 gallons of apple cider, imported from abroad at $5 a gallon. There is a teacher who educates children at the public school and makes $4. There is also a tax collector, who collects taxes amounting to $8. The government's budget is balanced, and thus, the $8 in tax revenue is spent on the $4 teacher's salary and the tax collector's salary, which is also $4. In the national accounts, Which is correct?
A. Consumption is $95
B. Government purchases of goods and services is $8
C.net exports is $5
D.all of the above

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