Define the four categories of expenditures which comprise GDP
What will be an ideal response?
(1) Personal consumption expenditures including consumer spending on durable goods, nondurable goods, and services; (2) gross private domestic investment which includes business purchases of machinery, equipment and tools, business and residential construction, changes in business inventories; (3) government purchases of goods and services that government consumes in providing goods and services, excluding government transfer payments, and expenditures for publicly owned capital; (4) the value of net exports which is the value of exports of goods and services minus the imports of goods and services.
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Not including transactions from the underground economy will tend to ________ GDP, and not including environmental changes caused by pollution will tend to ________ GDP
A) undervalue; undervalue B) overvalue; overvalue C) overvalue; undervalue D) undervalue; overvalue
For the monopoly shown in the figure above, when it maximizes its profit the marginal cost is ________ per unit and the price is ________ per unit
A) $10; $30 B) $20; $20 C) $10; $20 D) $30; $20.