In Using the Expenditure Approach to GDP,consumption

question 34

Multiple Choice

In using the expenditure approach to GDP,consumption

• A)includes consumer durables,semi-durable goods,nondurable goods,and services.
• B)includes houses,consumer durables,nondurable goods,and services.
• C)includes residential investment,nondurable goods,and services.
• D)excludes all purchases by business firms.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply to the market.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good changes as the production volume varies.

Average Variable Cost

Variable cost divided by the quantity of output

Unique Goods

Products that are distinct in their characteristics, offering uniqueness that differentiates them from mass-produced items.