Gross Domestic Product Is Equal to the Sum of Consumption

question 37

Multiple Choice

Gross Domestic Product is equal to the sum of consumption expenditure, investment, net exports, and .

• A) net taxes
• B) profits
• C) government expenditures on goods and services
• D) saving

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Definitions:

Marginal Revenue

The surplus revenue acquired from the sale of one more unit of a good or service.

Profit Maximizing Output

The level of production at which a firm achieves the highest possible profit, determined by the point where marginal cost equals marginal revenue.

Demand Curve

A graphic representation showing how the quantity demanded of a good or service varies with its price.

Marginal Cost

The hike in complete costing that comes with the fabrication of an additional unit of a good or service.