Which of the Following Statements Is True

question 61

Multiple Choice

Which of the following statements is true?

• A) National income accountants consider the portion of corporate profits that is used to pay corporate profits taxes to be income earned by households but not received.
• B) Net domestic product (NDP)is a smaller dollar amount than GDP.
• C) Personal income includes transfer payments.
• D) b and c
• E) a,b,and c

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Definitions:

Herfindahl Index

A measure of the concentration of industries or markets, calculated as the sum of the squares of the market shares of the largest firms, used to assess the extent of competition.

Concentration Ratios

measures that indicate the extent to which a small number of firms dominate the sales, output, or capacity in a particular market.

Game Theory

A theoretical framework for conceiving social situations among competing players and predicting their optimal decisions.

Pricing Behavior

Strategies and factors that firms consider when setting prices for their products or services.