Take Test: Pre-final-ECON-12... QUESTION 11 Luigi owns and operates a small rest
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Take Test: Pre-final-ECON-12... QUESTION 11 Luigi owns and operates a small restaurant. The income he receives from the restaurant is classified as: a. saving. b. dividends. come. od proprietor's income. e. wages and salaries. QUESTION 12 The table below shows the real gross domestic product (GDP), consumption, planned investment, and government purchases for an economy. The aggregate expenditure in equilibrium is Planned Government Real GDP (S) 1,800 1,900 2,000 2,100 n (S) Purchases (S) 1,540 1,620 1,700 1,780 100 100 100 200Explanation / Answer
Answer 1. - Proprietor's income.
SInce she owns and operates the restaurant she is the proprietor and her income will be known as Proprietor's income.
Answer 2. - $2000
Answer 3. -A nominal GDP by the price index.
Real GDP is the nothing but the nominal GDP adjusted with the inflation or price levels. It is a more reliable method for calculating GDP and specially for conversions.
Ans 4. any factor that facilitates production and exchange, such as tax laws ad property rights.
Rule of the game is not just confined to economics. It is a general phenomenon and a refers to a set of practices that are essential to follow.
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