2. Definitions. if profit takes a bigger share of GDP. Which of the following statements about GDP is correct? Home. b. consumption must equal saving. • The two sectors must pay the same wage because labor can move between sectors. Wages Must Equal Profit. – e.g. Why is this true? 3.7 million tough questions answered . For an economy as a whole, a. wages must equal profit. b. consumption must equal income. d consumption must equal saving They believe that: […] – Or if the wage were higher in the food sector, workers would move … In each firm, and thus in the firm sector as a whole, revenues must equal payments to inputs. • If the wage were higher in the cloth sector, workers would move from making food to making cloth until the wages become equal. – Or if the wage were higher in the food sector, workers would move in the other direction. Social spending which targets low-income families is much better for the economy than universal programs. 30. The following transactions take place in 2000: 1.... 1. GDP measures the production of the economy and total income in the economy. d. Income must equal expenditure. For an economy as a whole, income must equal expenditure. Untitled. 266 million people are denied a minimum wage due to restrictive laws and non-compliance, in particular agricultural and domestic workers. b. consumption must equal saving. The correct answer is c. income must equal expenditure. Transcribed Image Textfrom this Question. Because every transaction has a buyer and a seller, a. GDP is more closely associated with an economy’s income … Consumption must equal saving. Study Guides. (a) GDP measures two things at once: the total income of everyone in the economy and the unemployment rate of the economy’s labor force. For an economy as a whole, income must equal expenditure because: Every transaction has a buyer and a seller. C. consumption must equal saving. Personalized courses, with or without credits. - Definition, Role & Functions, Shifts in the Production Possibilities Curve, Circular Flow of Economic Activity: The Flow of Goods, Services & Resources, Perfect Competition: Definition, Characteristics & Examples, Four Factors of Production: Land, Labor, Capital & Entrepreneurship, Calculating Equilibrium Price: Definition, Equation & Example, The Cobb Douglas Production Function: Definition, Formula & Example, College Macroeconomics: Homework Help Resource, Introduction to Macroeconomics: Help and Review, Principles of Macroeconomics: Certificate Program, College Macroeconomics: Tutoring Solution, CLEP Principles of Macroeconomics: Study Guide & Test Prep, Business 104: Information Systems and Computer Applications, Biological and Biomedical (a) wages must equal profit (b) consumption must equal income (c) income must equal expenditure (d) consumption must equal saving 34. - 15022904 This includes regional, national, and global economies. rent from allowing firms to use their land. 1 Answer to 1.In economy as a whole: A. wages must equal profit. Above all, we should be able to predict the effects of income inequality on economic growth, which was the topic of my doctoral dissertation.Theoretical research shows that this effect can go in both directions, that is, from inequality to growth and vice versa (see Chapter 1.4 for more details). The latest Global Wage Report from the International Labour Organization (ILO)reveals downward pressure on wages in two-thirds of the world's countries during the COVID-19 pandemic, with the crisis hitting the lowest paid hardest. In other words, the gap between farm and nonfarm wages is slowly shrinking, but still … Switch to. The reason that GDP can perform the trick of measuring both total income and total expenditure is that these two things are really the same. b. consumption must equal saving. an economy as a whole, a. wages must equal profit. A nationa view the full answer. 3.7 million tough questions answered. Households derive income from: Question options: wages or labor income. Our experts can answer your tough homework and study questions. Corporations are often blamed for putting profits ahead of workers. This will happen only when the wage cut is a particular wage cut (in toy industry alone). Question: 1.In Economy As A Whole: A. d. the number of buyers must equal the number of sellers. Performance & security by Cloudflare, Please complete the security check to access. ‘Spending’ is the act of buying a good or service. 2. The most elementary economic configuration, i.e. • The two sectors must pay the same wage because labor can move between sectors. Household income comes from two main sources: (1) Households contain workers who sell their time to firms and receive wages in return. Inequality is now rising rapidly. As such, if the general wage cut applied in the economy as a whole reduces purchasing power of the people (results in a fall in the effective demand) it is highly doubtful that the demand for toys would go up resulting in an increase of output and employment in the toy industry. This is because, at the equilibrium level, the individuals total expenditure is equal to the total income of the individuals. Such a household has no desire to smooth consumption over time. Economy. For purposes of federal income tax withholding, 26 U.S.C. Every dollar of spending by some buyer is a dollar of income for some seller. No Logic November Week 3 Settings. Every dollar of spending by some buyer is a dollar of income for some seller. c. income must equal expenditure. All other trademarks and copyrights are the property of their respective owners. Untitled. d. the number of buyers must equal the number of sellers. For an economy as a whole, a. the market value of production must equal expenditure. The correct answer is c. income must equal expenditure. 13 points For an economy as a whole, a. 9.For an economy as a whole, a. wages must equal profit. 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. Income inequality is blamed on cheap labor in China, unfair exchange rates, and job outsourcing. Start studying Econ 101 chapter 5. Consumption Must Equal Saving. If someone pays someone else $100 to mow a lawn, the expenditure on the lawn service ($100) is exactly equal to the income earned from the production of the lawn service ($100). Whole: a income ’, which is the act of spending by buyer. Every act of buying a good or service: •Every transaction has a buyer and a.... 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