Homework Answers
Q7) option 2)
Opportunity cost is lost income
Q8) option 4) Increase, Increase
This enhances Productivity which in turn enhances wages
Q9) Y = C+G+I
= 2200+500+350
= 3050
National saving = Y-C-G
= 3050-2200-500
= 350
.
Private saving = Y-C-T
= 3050-2200-425
= 425
.
Govt saving = T-G
= 425-500
= -75
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