The total value added in the production of a final good
a. exceeds the price of the final good.
b. equals the price of the final good.
c. exceeds the total payments made to owners of productive resources used in the production.
d. both equals the price of the final good and exceeds the total payments made to owners of productive resources used in the production.
b. equals the price of the final good.
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What is the shape of a monopolist's demand curve and marginal revenue curve?
What will be an ideal response?
In the U.S. economy, labor earnings make up about
a. one-half of total income. b. two-thirds of total income. c. three-fourths of total income. d. nine-tenths of total income.
If the market supply curve does not capture all of the costs to society of producing an additional unit of good, then:
A. the market will not be in equilibrium. B. the allocation of resources will be efficient. C. the market equilibrium will be socially optimal. D. the market equilibrium will not be efficient.
Exhibit 11-11 GDP data (billions of dollars) Personal consumption expenditures$4,750 Exports810 Government spending1,400 Social Security taxes600 Depreciation450 Indirect business taxes550 Imports850 Gross private domestic investment900 Corporate income taxes200 Personal taxes800 Corporate profits50 Transfer payments700 In Exhibit 11-11, and using the expenditures approach, gross domestic product (GDP) equals:
A. $7,010 billion. B. $10,360 billion. C. $9,660 billion. D. $7,860 billion.