When a firm produces and sells a refrigerator worth 1,000, its contribution to the gross domestic product (GDP) on the income side is measured by:
a. the price paid by the consumer.
b. the investment made by the firm to manufacture the refrigerator.
c. the stock of inventories used by the firm to manufacture the refrigerator.
d. the cost of raw materials used by the firm to manufacture the refrigerator.
e. the sum of the wages, interest, and rent paid by the firm's owners and the profit of the firm.
Question 2
If the demand for the finished product increases, the:
a. demand for the resources will increase.
b. demand for the resources will decrease.
c. marginal factor cost will increase.
d. marginal factor cost will decrease.
e. MP will increase.
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