All of the Following Would Be Included in Planned Aggregate

question 33

Multiple Choice

All of the following would be included in planned aggregate expenditure EXCEPT:

• A) purchases of services provided by government employees.
• B) planned changes in inventories.
• C) sales of domestically produced goods to foreigners.
• D) social security payments.

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Definitions:

Opportunity Cost

Surrendering the potential for benefits from different routes when opting for a specific path.

Production Possibilities Frontier

A chart illustrating the maximum production potential for two or more items, considering a specific amount of inputs.

Positive Statement

An objective and fact-based statement or claim that describes how the world actually is, as opposed to what it should be, often used in economic analysis.

Normative Statement

A value judgment that expresses an opinion or belief about what ought to be, rather than statements of fact.