The Department of Commerce sums the payments made to resources to arrive at GDP in the form of wages, self-employment income, rents, interest, profits, indirect taxes, and depreciation. This method of deriving GDP is called the
a. opportunity cost approach.
b. resource cost-income approach.
c. expenditure approach.
d. monetarist approach.
B
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In the simple Keynesian cross model with no government or foreign sectors, at the equilibrium level of output
A) saving is less than investment. B) saving is equal to investment. C) saving is greater than investment. D) saving is equal to zero.
In the expenditure approach to GDP, the largest component is
A) government expenditure on goods and services. B) personal consumption expenditures. C) gross private domestic investment. D) net exports.
When a product transformation curve is bowed outward, there are ________ in production
A) economies of scope B) economies of scale C) diseconomies of scope D) diseconomies of scale E) none of the above
Vertical contracts between manufacturers and retailers often aim to
a. Prevent the retailers from defeating upstream price discrimination through arbitrage b. Reward the manufacturer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the retailer's belief of the likely success of his product d. All of the above