Which of the Following Statements About Aggregate Accounting Is False

question 48

Multiple Choice

Which of the following statements about aggregate accounting is false?

• A)It provides a way of measuring total, or aggregate, production.
• B)It provides a way of measuring how much a nation is producing and consuming.
• C)It did not exist before the 1930s because economists focused on microeconomics before the 1930s.
• D)It is the best way to measure social welfare for an economy.

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Definitions:

Costs And Benefits

This is an analysis approach that compares the potential outcomes and implications, in terms of costs and benefits, of an action or decision.

Marginal Social Benefit

The extra advantage to society that comes from using an additional unit of a product or service.

Marginal Social Cost

The total cost to society of producing one additional unit of a good, including both private costs and externalities.

Pollution

The presence in or introduction into the environment of substances or things that have harmful or poisonous effects.