What Are the Components of the National Spending Approach to Splitting

question 271

Multiple Choice

What are the components of the national spending approach to splitting GDP?

• A) consumption expenditures, transfer payments, and government investment
• B) private investment, sale of new and used goods, net exports, and transfer payments
• C) consumption, investment goods, government purchases, and net exports
• D) wages, rent, interest, and profit

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Definitions:

Monthly Fixed Expense

Costs that do not vary with the level of production or sales in a given period, such as rent or salaries, accruing on a monthly basis.

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the buffer against losses.

Break-Even Sales

The amount of revenue that is exactly sufficient to cover both fixed and variable costs, resulting in neither profit nor loss.

Break-Even

The point at which total revenues equal total costs, resulting in no net loss or gain.