Production equals income because law firms must pay out a for e l their revenue
ID: 1116758 • Letter: P
Question
Production equals income because law firms must pay out a for e l their revenue as income to sale there is a buyer and a seller ultimately firms are owned by None of the above are correct 11. To compute GDP we and services sum the number of final the cost of ing final and services weights determined by a survey regarding how much people value different of and services to c GDP as a wei the market values of final and services 12. Which of the following is not included in GDP? id cleaning and maintenance of houses such as those he estimated rental value of by lawyers and hair stylists housin of citizens g in the United States GDP includes the value of intermediate xcludes the value of intermediate can get a measure of sales so we because they are too difficult to measure s the value of intermediate goods because their value is already counted in he value of final None of the above are correct. 14 In computing GDP, investment is spending on ks, bonds, and other financial assets l estate and financial assets new housin apital equipment, inventories, and structures, excluding household purchases of
Explanation / Answer
(10) (a)
Firms pay out their revenue to owners of factors of production, and to the factor "Entrepreneurship" as profit.
(11) (d)
GDP measures the total market value of final goods and services produced within the economy in a given period.
(12) (c)
This is an impute cost and is excluded from GDP.
(13) (c)
Intermediate goods are excluded to avoid double counting.
(14) (c)
(15) (a)
This is a business fixed investment, which increases investment demand and GDP.
(16) (b)
These are unilateral payments for which no good or service is received.
(17) (b)
(18) (b)
Economic growth is measured by the percentage change in real GDP.
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