Suppose that in producing a GDP of 3000, goods worth 200 go unsold and are unintentionally added to business inventories. These goods
A) are not counted in total expenditure.
B) are part of the investment component of expenditure.
C) are nonetheless part of the consumption component of expenditure.
D) are classified as net exports and are subtracted from total expenditures.
B
You might also like to view...
In economics as well as in social relations in general, clear and concise information
A) eliminates the need for cooperation. B) guarantees effective cooperation. C) makes cooperation easier to achieve. D) makes cooperation more difficult to achieve.
Which of the following CORRECTLY characterize principals and agents in important examples of the principal-agent problem?
A) In the doctor/patient relationship, the patient is the principal and the doctor is the agent. B) In the lawyer/client relationship, the client is the principal and the lawyer is the agent. C) Both of the above answers are correct. D) Neither of the above answers is correct.
Diminishing marginal utility means that: a. marginal utility is maximized when consumers get the same amount of total utility from every good they consume. b. beyond some point, added units of a product provide lower and lower amounts of marginal utility
c. a consumer would get more utility from the last unit of a good consumed when that good costs $3 than when it costs $1. d. both (b) and (c) are true.
The basic reason for the gas lines in 1973 and 1979 was _____.
Fill in the blank(s) with the appropriate word(s).