Which of the following statements is NOT true about the relationship between the dollar value of total output and total income?
A) The dollar value of total output equals total income because the spending of one group is the income of another.
B) The dollar value of total output equals total income because profit is considered a cost of production.
C) The dollar value of total output equals total income because profit is not considered a cost of production.
D) The dollar value of total output equals total income because of the economic definition of profit.

Question

Quizplus · Accepted Answer

Profit is not considered a cost of production, therefore this statement is not true. The dollar value of total output equals total income because the spending of one group is the income of another and also because of the economic definition of profit, which is included in the calculation of total income. B is also true, but it is not the NOT true statement.

Which of the Following Statements Is NOT True About the Relationship