Author Question: In comparing the magnitudes of the components of GDP according to the expenditure approach, we see ... (Read 77 times)

karen · **on:** Jun 29, 2018

In comparing the magnitudes of the components of GDP according to the expenditure approach, we see that in the United States

A) government expenditure on goods and services is the largest category.
B) investment is the largest category.
C) investment is much larger than government expenditure on goods and services.
D) investment is less than government expenditure on goods and services.
E) investment, government expenditure on goods and services, and consumption expenditure are all about the same size.

Question 2

Suppose firms in Hong Kong can produce 40,000 plastic dolls or 80,000 squirt guns each week, while firms in Taiwan can produce 40,000 plastic dolls or 40,000 squirt guns each week. Therefore, when we compare the two groups:

A) the costs of production are the same in each country.
B) the people in Hong Kong are the most efficient producers of both plastic dolls and squirt guns.
C) the people in Taiwan produce plastic dolls with the same efficiency as Hong Kong.
D) none of the above are true.