Which of the following statements is FALSE?
A. The value of total output is identical to total income.
B. Transactions in which households buy final goods and services occur in the factor market.
C. One definition of total income is that it is the annual cost of producing the entire output of final goods and services.
D. Saving is the difference between consumer income and expenditures.
Answer: B
You might also like to view...
One difference between the federal government budget and state and local budgets is that
a. deficits in state and local governments average zero over longer periods of time. b. cyclical deficits are zero for state and local governments. c. state and local governments typically run surpluses. d. both a and b. e. none of the above.
Which of the following would likely increase private saving?
a. Both expansion of IRA type accounts and a consumption tax. b. Expansion of IRA type accounts, but not a consumption tax. c. A consumption tax, but not expansion of IRA type accounts. d. Neither expansion of IRA type accounts nor a consumption tax.
Between 1994 and 2015, farmland prices were
A. curiously unrelated to commodity (particularly corn and soybean) prices. B. decreasing sharply. C. closely related to commodity (particularly corn and soybean) prices. D. decreasing slowly.
What are the two key factors that determine the strength of demand? How do they determine whether a good is in high demand or low demand?
What will be an ideal response?