A) the number of firms is equal to the number of households in an economy.
B) individuals can only spend what they earn each period.
C) every dollar of spending by some buyer is a dollar of income for some seller.
D) every dollar of saving by some consumer is a dollar of spending by some other consumer.
F) All of the above
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A) GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy's output of goods and services.
B) Money continuously flows from households to firms and then back to households,and GDP measures this flow of money.
C) GDP is generally regarded as the best single measure of a society's economic well-being.
D) All of the above are correct.
F) B) and C)
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A) is less than its domestic production.
B) is equal to its domestic production.
C) is greater than its domestic production.
D) could be less than,equal to,or greater than its domestic production.
F) A) and B)
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A) only household expenditures on these goods and services
B) only household and business expenditures on these goods and services.
C) only household and government expenditures on these goods and services.
D) the expenditures on these goods and services by whoever buys them.
F) B) and D)
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A) income and expenditures.
B) income but not expenditures.
C) expenditures but not income.
D) neither income nor expenditures.
F) A) and B)
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A) wages.
B) rents.
C) profits.
D) All of the above are correct.
F) B) and C)
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A) can be computed as either the revenue firms receive from the sales of goods and services or the payments they make to factors of production.
B) can be computed as the revenue firms receive from the sales of goods and services but not as the payments they make to factors of production.
C) can be computed as payments firms make to factors of production but not as revenues they receive from the sales of goods and services.
D) cannot be computed as either the revenue firms receive or the payments they make to factors of production.
F) A) and B)
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