The components of the expenditure approach to measuring GDP include all of the following EXCEPT
A. expenditures for business investments.
B. net exports.
C. the implicit payments for unpaid household work.
D. government purchases of goods and services.
Answer: C
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The ability to produce a good at a lower opportunity cost than someone else is called
A) competitive production. B) comparative advantage. C) selective advantage. D) absolute advantage.
When collective decision making (the political process) is used to resolve economic questions regarding the allocation of resources,
What will be an ideal response?
According to Baumol and Blinder, from the demand side, an increase in the price level causes aggregate expenditures to
A. fall, resulting in a lower level of equilibrium income. B. fall, resulting in a higher level of equilibrium income. C. rise, resulting in a higher level of equilibrium income. D. rise, resulting in a lower level of equilibrium income.
The difference between economic profit and accounting profit is equal to:
A. implicit and explicit costs. B. implicit and explicit revenues. C. zero. D. implicit revenues minus implicit costs.