Undistributed profits ________ counted as part of GDP because ________
A) are not; households are not paid by the firms
B) are; they can be used to buy other goods
C) are; they are considered income paid to households and loaned back to firms
D) are not; they are considered an intermediate good
E) are; firms are required to pay corporate income taxes on them
C
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In the economic way of thinking, a rise in the real output of final goods and services can be associated with
A) a fall in the price level. B) a rise in nominal GDP. C) a rise in the price level. D) a fall in nominal GDP. E) any of the above.
Which of the following is not considered a significant factor contributing to economic growth by economists today?
a. work effort is less intense in the heat of the tropics b. an increase in the quantity of physical capital c. increased use of land inputs d. greater division of labor and specialization