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Question
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.
Answer
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