Thomas,a U

question 90

Multiple Choice

Thomas,a U.S.citizen,works only in Canada.The value of the output he produces is

• A)included in both U.S.GDP and U.S.GNP.
• B)included in U.S.GDP,but it is not included in U.S.GNP.
• C)included in U.S.GNP,but it is not included in U.S.GDP.
• D)included in neither U.S.GDP nor U.S.GNP.

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Definitions:

Marginal Costs

The investment required to manufacture an incremental unit of a product or service.

Variable Costs

Costs that change in proportion to the level of activity or production volume.

Fixed Costs

Costs that do not change with the level of output produced by the firm, such as rent, salaries, or loan repayments.

Positive Reinforcement

A method in behavior psychology where a positive stimulus is presented after a desired behavior, increasing the likelihood of that behavior in the future.