When final sales are larger than GDP,
a. inventories did not change
b. a net increase in inventories took place
c. a net decrease in inventories took place
d. the direction of any net change in inventories is uncertain
The total value added in the production of a final good
a. exceeds the price of the final good
b. equals the price of the final good
c. exceeds the total payments made to owners of productive resources used in the production
d. both (b) and (c)
Discharges of chemicals from a paper plant that pollute a nearby river represent an example of
a. internal costs
b. the underground economy
c. social costs
d. transfer costs
An increase in the price level adds to the value of the nominal GDP but not to the real GDP.
True
False
The GDP excludes the production of services for which no monetary transaction takes place.
True
False