The value-added approach of measuring GDP does not do the following.
A. It includes the revenue a firm receives from selling a product minus the amount paid for goods purchased from other firms.
B. It includes only the value-added portion from the sale of goods and services.
C. It includes only the second-to-the-last value of the intermediate good used.
D. It avoids double counting.
Answer: C
You might also like to view...
In a market with ________, one side of the market has private information that is relevant for the other side
A) asymmetric information B) perfect competition C) monopolistic competition D) positive externalities
The ratio of the total amount of demand deposits at a bank to the amount kept as cash reserves is known as the:
A. reserve ratio. B. demand deposit ratio. C. demand-reserve ratio. D. federal funds rate.
If each firm in an oligopolistic market matches price decreases but does not match price increases
A. prices become flexible. B. prices become rigid where the marginal revenue and average cost curves intersect. C. price wars ensue, and economic profits fall to zero. D. prices become rigid at the prevailing market price.
A new public playground has just been built in a town. Which action of the citizens would best demonstrate the Tragedy of the Commons?
a. Every Friday a group of parents meet there to play with their children. b. A civic group collects litter from the park once a month. c. Most residents stay at home and do not use the park. d. Many people litter and misuse the equipment, causing it to break.