When Constructing the PDM,an Activity Can Have

question 74

Multiple Choice

When constructing the PDM,an activity can have

• A)predecessors with no successors.
• B)successors with no predecessors.
• C)both predecessors and successors.
• D)all of the above.

Distinguish between final goods and services and intermediate goods to prevent double counting in GDP calculation.

Understand the concept of national income and how it relates to GDP, including the various forms of income that constitute national income.

Grasp how changes in productivity and price levels affect economic indicators like GDP and national income.

Analyze the implications of government purchases, net exports, and consumption on GDP.

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Definitions:

Output

The quantity of products or services generated by an enterprise, sector, or economic system.

Physical Capital

Assets used in the production process that are physical in nature, such as buildings, machinery, and equipment.

Variable Costs

Expenses that vary directly with the amount of output or business operations.

Workers

Individuals engaged in a professional or labor activity to earn wages or salaries.