Refer to Figure 11.1. Assume the economy is in equilibrium at 1 = 0. Other things equal, a surge in household wealth will result in a movement from point ________ to point ________

Which of the following explains the relationship between price and the quantity supplied?

a. When expanding output, firms will incur greater total costs. b. As the price of a commodity falls, producers will find it more profitable to use higher-priced inputs in their production process. c. As a result of rising production costs, firms can increase profits by expanding output only if the price of output increases. d. To expand output, firms must hire more resources, which are always of poorer quality. e. Consumers want more at lower prices.

The income approach to measuring GDP includes:

a. compensation for employees, net interest, rent, net profits, and indirect business taxes and depreciation. b. compensation for employees, net interest, rent, corporate profit, and transfer payments. c. compensation for employees, net interest, rent, and indirect business taxes. d. compensation for employees, net interest, rent, corporate profits, and capital depreciation. e. compensation for employees, rent, corporate profits, proprietors' income, and transfer payments.