Which, If Any, of the Following Causes a Country's Reported

question 165

Multiple Choice

Which, if any, of the following causes a country's reported GDP to be less than its total economic production?

• A) the exclusion of household production
• B) the exclusion of government transfers
• C) the inclusion of government expenditures
• D) None of the above cause reported GDP to be less than total production.

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Definitions:

Perfectly Competitive

A market structure where numerous small firms sell identical products, there’s free entry and exit, and no single firm can influence the market price.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good or service changes as production volume changes.

Variable Input

Any resource for which the quantity used in production can vary as the level of output changes.

Perfectly Competitive

A market structure where many firms offer products that are similar and entry into the market is relatively free of barriers.