GDP Can Be Estimated by Summing

question 248

Multiple Choice

GDP can be estimated by summing

• A)personal consumption expenditures,net private domestic investment,and federal government spending.
• B)personal consumption expenditures,gross private domestic investment,government spending on goods and services,and net exports.
• C)all services and goods purchased by households,businesses,and government.
• D)household spending,investment,financial transactions,and government transfers.

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Definitions:

Market Power

The ability of a firm or group of firms to influence or control prices or output in a particular market.

Barriers to Entry

are obstacles that make it difficult for new competitors to enter an industry, including high startup costs, strict regulations, and established brand loyalty.

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical.

Monopolies

Market structures characterized by a single seller controlling a large portion of the market and the lack of viable competition.