Depreciation Is Subtracted from GDP to Get NDP.Depreciation

question 30

Multiple Choice

Depreciation is subtracted from GDP to get NDP.Depreciation

• A)represents the value of leisure goods
• B)measures changes in exchange rates
• C)represents income that we earn but do not receive
• D)represents investment undertaken merely to replace worn-out capital
• E)measures the effects of government subsidy programs

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Definitions:

Total Utility

The overall satisfaction or pleasure a person derives from consuming a certain amount of goods or services.

Marginal Utility

The additional satisfaction or utility received by consuming one more unit of a good or service.

Total Utility

The overall pleasure or value derived by using a certain amount of an item or service.

Marginal Utility

The extra pleasure or benefit a buyer receives from purchasing an additional unit of a product or service.