The GDP of a country can be derived by summing
a. the expenditures on final user goods and services produced domestically during the year.
b. the payments to employees and owners of capital resources and then subtracting depreciation and indirect business taxes.
c. the market value of all goods and services produced domestically during the period and then subtracting net exports from that figure.
d. the income payments to the resource suppliers and net exports.
A
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Which of the following is NOT a common characteristic of a developing country?
A) extensive direct government control of the economy B) history of low inflation C) many weak credit institutions D) "pegged" exchange rates E) Agricultural commodities make up a large share of its exports.
Which of the following is a valid effect of monopoly power?
A. Desirable effects on the distribution of wealth B. Efficient resource allocation C. Fostering of innovation D. Obstacle to efficiency
The political attractiveness of tariffs, quotas, and other trade restrictions is primarily the result of
A) the political clout of domestic consumers. B) the attractiveness of sound economic policies to elected political officials. C) the special interest nature of trade restrictions. D) the political clout of foreigners.
According to the Monetarist view, the impact of expansionary monetary policy will be:
A. the same in the long run as in the short run. B. the same regardless of whether the effects of the policy are anticipated or unanticipated. C. a higher price level (inflation). D. a decrease in short-run prices and an increase in long-run prices.