In the value added approach to calculating GDP, counting both the intermediate good and the final product would understate the contribution to GDP

National income equals gross domestic product

A) minus the consumption of fixed capital. B) minus government transfer payments. C) plus government transfer payments. D) plus sales taxes.

If a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then

a. a one-unit increase in output will increase the firm's profit. b. a one-unit decrease in output will increase the firm's profit. c. total revenue exceeds total cost. d. total cost exceeds total revenue.