The Equality Between GDP and GDI in an Economy Implies

question 36

Multiple Choice

The equality between GDP and GDI in an economy implies that the income generated by final goods and services is equal to:

• A) expenditures on intermediate goods and services.
• B) gross private domestic investment.
• C) the total value of final goods and services produced.
• D) total wages and other employee compensation.

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Definitions:

Yearly Savings Rate

The percentage of an individual's or household's income that is saved rather than spent over the course of a year.

FOB Shipping Point

A term in shipping contracts that specifies that the buyer is responsible for the cost and risk of transporting goods from the point of origin as soon as they are loaded onto the transport vehicle.

Freight Costs

Expenses associated with transporting goods from one location to another, including charges for shipping, handling, and insurance.

FOB Shipping Point

A delivery term indicating that the buyer takes ownership and risk for the goods once they are shipped, with FOB meaning "Free On Board".