Which of the following statements is true?
A. National income is total income earned by households whereas personal income is total income received by households (including transfer payments).
B. Disposable personal income equals personal income plus personal taxes.
C. The expenditures approach yields a higher GDP value than the income approach.
D. The expenditures approach yields a lower GDP value than the income approach.
Answer: A
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An example of a short-run fixed factor of production is
A) capital equipment. B) labor. C) electricity. D) postage for mailing.
The GDP deflator in year 2 is 105, using year 1 as the base year. This means that, on average, the cost of goods and services is
A) 5% higher in year 1 than in year 2. B) 105% higher in year 1 than in year 2. C) 105% higher in year 2 than in year 1. D) 5% higher in year 2 than in year 1.
The cost borne by a producer in the production of a good or service is called
A) internal cost. B) social cost. C) public cost. D) private cost.
The marginal benefit in the table is:Control variableTotal BenefitsTotal CostsNet BenefitsMarginal BenefitMarginal CostMarginal Net BenefitQB(Q)C(Q)N(Q)MB(Q)MC(Q)MNB(Q)0000---190010080090010080021,700300C80020060032,4006001,800700E4004A1,0002,00060040020053,5001,5002,000500500F63,9002,1001,800D600-20074,2002,8001,400300700-40084,400B800200800-60094,5004,5000100900-800104,5005,500-1,00001,000-1,000
A. increasing at a constant rate. B. increasing at a decreasing rate. C. decreasing at a constant rate. D. decreasing at an increasing rate.