The Largest Category of Expenditures in U

question 27

Multiple Choice

The largest category of expenditures in U.S. GDP is:

• A) consumption expenditures.
• B) investment expenditures.
• C) government expenditures.
• D) net export expenditures.

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Definitions:

Government-Created Monopoly

A market situation where a government grants exclusive rights to a single entity to provide a particular good or service, limiting competition.

Exclusive Right

Exclusive right refers to a legal provision granting someone the sole authority to exploit a particular property, product, or service for a specified purpose.

Natural Monopoly

A situation in which a single firm can supply a product or service to an entire market more efficiently than multiple companies, often due to high fixed costs.

Economies of Scale

The cost advantage that arises with increased output of a product, leading to a fall in the per-unit production cost.