When a Firm Produces and Sells a Refrigerator Worth $1,000

question 20

Multiple Choice

When a firm produces and sells a refrigerator worth $1,000, its contribution to the gross domestic product (GDP) on the income side is measured by _____

• A) the price paid by the consumer.
• B) the cost to the consumer of forgoing another product.
• C) the stock of inventories used by the firm to manufacture the refrigerator.
• D) the cost to the producer of not producing another product.
• E) the sum of the wages, interest, and rent paid by the firm's owners and the profit of the firm.

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Definitions:

Control Group

In an experimental study, group of subjects whose experience resembles that of the experimental group in all ways except that they do not receive the key manipulation.

Wait List Control

A research method where participants are assigned to a waiting list and receive the intervention after the active treatment group, used as a control condition in studies.

Obsessive-Compulsive

Pertaining to a pattern of unwanted thoughts and fears (obsessions) that lead to repetitive behaviors (compulsions).

Human Laboratory Studies

Research conducted in a controlled lab setting with human participants to study various aspects of human behavior, physiology, and psychology.