Which of the following statements is false?
A) For purposes of computing GDP, the purchases of new residential housing are considered investment although it is undertaken by the household sector.
B) Consumption includes spending on durable goods but not spending on services.
C) Investment includes fixed investment but not inventory investment.
D) b and c
D
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The yardstick most often used to compare living standards across nations is
a. average production cost per unit b. sales revenue per month c. utility per capita d. output per capita e. imports per year
Because of product differentiation, a monopolistically competitive firm: a. possesses some degree of market power
b. is very similar to a perfectly competitive firm. c. faces a perfectly elastic demand curve. d. is unaffected by the elasticity of demand.