The Share of GDP Available for Nongovernment Use

question 16

Multiple Choice

The share of GDP available for nongovernment use

• A)is, for any interest rate, the sum of the share of investment and consumption expenditures.
• B)is the sum of the share of net exports, investment, and consumption expenditures at any given interest rate.
• C)is equal to 1 minus the government share of GDP.
• D)varies depending on the interest rate.
• E)None of these

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Definitions:

Economic Profit

The difference between total revenues earned from production and the total opportunity costs of all inputs used in production.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment to changes in market conditions.

Losses

Losses refer to the amount by which expenses exceed revenues in a particular period, indicating a negative financial performance for a business.

Constant-cost Industry

An industry in which the costs of production, including the prices of raw materials and wages, do not change as the industry's output changes.