The accounting identity for the economy’s factor payments can be written as ____.
A. GDP = wages + interest + rents + profits
B. GDP = consumption + investment + government + intermediate goods + net exports
C. GDP = wages + interest + rents + net exports
D. GDP = wages + interest + rents + saving + investment
Answer: A
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Studies of mutual fund performance indicate that mutual funds that outperformed the market in one time period usually
A) beat the market in the next time period. B) beat the market in the next two subsequent time periods. C) beat the market in the next three subsequent time periods. D) do not beat the market in the next time period.
Depreciation or consumption of fixed capital measures:
A. the decline in the value of inventories caused by inflation. B. the loss of productive ability due to capital intensive production. C. capital that is wasted in the production process. D. the value of existing capital stock used up in the production process.
A payment for a resource above the opportunity cost of the resource is
A. nominal rent. B. economic rent. C. real rent. D. social rent.
When the price of a normal good falls, then:
a. both the income and substitution effects combine to cause the quantity demanded to increase. b. the substitution effect will cause people to buy more because the good is relatively less expensive. c. the income effect will cause people to buy more because of the increased purchasing power associated with the lower price. d. all of these.