When Would an Economist Focus on GNP Rather Than GDP

question 19

Multiple Choice

When would an economist focus on GNP rather than GDP?

• A) When the economist wants a more accurate measure of production, since GNP data are typically much more precise than GDP data
• B) When the economist wants to study consumption, since consumption expenditures are weighted more heavily in GNP than in GDP
• C) When the economist wants to measure total income earned or total amount of factors of production supplied by the residents of a country
• D) When the economist wants a measure of output that includes depreciation, because GDP omits depreciation in its calculations

Identify the prime costs in manufacturing.

Understand the purpose and composition of the cost of production report.

Recognize the impact of different costing methods (FIFO, LIFO) on inventory valuation and cost of goods sold.

Understand the process of recording costs transferred within departments and determining end period work in process balances.