To calculate GDP once national income has been computed, we must
A. add depreciation and indirect business taxes and transfer payments and subtract other business income adjustments and net U.S. income earned abroad.
B. add indirect business taxes and transfers and subtract depreciation, other business income adjustments, and net U.S. income earned abroad.
C. add indirect business taxes and transfers and subtract profits.
D. add depreciation and subtract indirect business taxes.
Answer: A
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Indicate whether the statement is true or false
Market economies produce outcomes that are
A. virtually ideal in all respects. B. inferior to most other systems. C. far from ideal, in some respects. D. virtually indistinguishable from command economies.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Is the monopolist supply decision more complicated than that of competitive supply?
a. Yes, because the monopolist can choose its price, and the perfect competitor cannot. b. No, because they are both price takers. c. No, because the market determines the quantity for the monopolist. d. No, because the market determines the price for both firms.