According to the income approach, the largest component of national income is:
a. government spending.
b. proprietor's income.
c. net interest.
d. personal consumption expenditures.
e. compensation of employees.
e
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What is required for a market to be considered monopolistically competitive? How does the equilibrium in a monopolistically competitive market resemble that in a perfectly competitive market? How are they different?
What will be an ideal response?
If the price-consumption curve is upward sloping when the price of the good measured on the horizontal axis changes, then the demand curve for that good will be upward sloping
Indicate whether the statement is true or false
The Second Theorem of Welfare Economics states that:
a. all Walrasian equilibria are also social welfare maxima. b. social welfare maxima will usually be Pareto inefficient. c. any social welfare maximum can be a Walrasian equilibrium with suitable transfers of initial endowments. d. all Pareto optimal allocations are social welfare maxima.
The decision to enter or exit an industry is known as the
A. Production decision. B. Profit maximization decision. C. Investment decision. D. Output decision.