To Calculate GDP by the Expenditure Method,one Must Add

question 174

Multiple Choice

To calculate GDP by the expenditure method,one must add

• A)wages,rents,interest,and profits.
• B)consumption spending,investment spending,government purchases,and net exports.
• C)consumption spending,investment spending,government purchases,and exports.
• D)labor,natural resources,entrepreneurship,and capital.

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Definitions:

Marginal Cost

The additional financial burden of creating another unit of a product or service.

Price Elasticity

The extent to which consumer demand for a good changes in response to a change in the good's price, represented by the ratio of percentage change in demand to percentage change in price.

Product Differentiation

The process by which companies distinguish their products from those of competitors, through design, features, branding, quality, or other attributes.

Product Differentiation

The process of distinguishing a product from others in the market to attract a specific target market.