A shortcoming of national income accounting is that it ignores:
a. the depreciation of manufactured capital.
b. spending by poor households who are receiving government transfer payments.
c. spending on intermediate goods.
d. the depletion of natural resources.
e. U.S. products that are sold overseas.
Question 2
If an employer currently finds that the MRP of its labor resources equals 67, and the MFC equals 56, what would you advise the firm to do?
a. Stay at its current output level.
b. Hire additional workers.
c. Raise product prices.
d. Reduce employment.
e. Purchase new technology.
Infant mortality by income quintile, urban Canada, 1996
E9-23 Prepare income statements Explain the difference in operating income