The theory of resource pricing is sometimes referred to by economists as the theory of income distribution. Why?
What will be an ideal response?
Resource prices are what producers must pay for the use of those resources. The owners of those resources are the recipients of these payments, or in the simple circular flow model, households supply resources to business firms in exchange for income payments. In other words, the payments that households receive from the sale of their resources constitute income in its various forms: wages and salaries, rent, interest, and profits. Therefore, any theory of how resources are priced is essentially a theory of how incomes are determined.
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A) explicit; accounting B) total; economic C) real; explicit D) economic; legal
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a. GNP which is larger than GDP in country A. b. GNP which is smaller than GDP in country A. c. GDP which is larger than GNP in country A. d. GDP which is smaller than GNP in country A.