Adding Wages, Interest, Rent and Profits Yields

question 31

Multiple Choice

Adding wages, interest, rent and profits yields

• A) net domestic product at factor cost.
• B) total expenditure.
• C) gross domestic product.
• D) gross domestic product at factor cost.
• E) GNP.

---

Definitions:

Dictator Game

A game used in experimental economics to study decision-making, where one player (the "dictator") determines how to split an endowment between themselves and another player.

Ultimatum Game

A game in economic experiments where two players decide how to divide a sum of money, with one proposing the split and the other accepting or rejecting it.

Time Inconsistency Problems

A situation in which a person's preferences change over time, such that what they plan to do in the future is inconsistent with their future desires, leading to potential issues in decision-making or policy settings.

Precommitments

Voluntary actions or pledges made in advance by an individual or organization to restrict future choices, usually to avoid impulsive behavior or to stick to a strategic plan.