(A Totally Marginal Question) The National Income accounts of the United States add up the value of...
Question:
(A Totally Marginal Question) The National Income accounts of the United States add up the "value" of all goods produced in the U.S. economy. The government multiplies the quantity of each (final) good produced by its price. and adds all of these numbers together, obtaining what it calls the "total value of all (final) goods produced." [The word final refers to avoiding double counting, by not adding the value of, say, flour, to the value of the bread pro- duced by that flour. Ignore this issue in this question.] It turns out that the value thus computed of pet food produced exceeds the value of milk (mostly consumed by children) produced. Does this mean that Americans place. greater importance on feeding their pets than feeding their children? Explain.
Step by Step Answer:
Principles Of Microeconomics
ISBN: 9780812224177
1st Edition
Authors: Eugene Silberberg And Gregory Ellis