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:

Factor Of Production

Resources used in the creation of goods and services, typically categorized into land, labor, capital, and sometimes entrepreneurship.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied.

Marginal Revenue Product

The extra income obtained by using an additional unit of a production input while keeping other inputs unchanged.

Labor Market

The supply and demand for labor, where employees offer their services and employers seek to hire, influencing wages and employment levels.