The Annual Cost of Producing the Entire Output of Final

question 31

Multiple Choice

The annual cost of producing the entire output of final goods and services in an economy is

• A) equal to the quantity of total output produced.
• B) greater than the total income of households in the economy.
• C) equal to total income.
• D) equal to the total income of households in the economy only if profits are zero.

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Definitions:

P(A)

The probability of an event A occurring.

P(B)

Represents the probability of an event B occurring in probability theory and statistics.

Classical Approach

A method or theory in economics and political philosophy centered around free markets, competition, and limited government intervention.

Relative Frequency Approach

A method of estimating probabilities based on the proportion of observed occurrences of an event relative to the total number of trials.