If a Parent Spends One Hour Each Weekday Transporting Her

question 49

Multiple Choice

If a parent spends one hour each weekday transporting her children to school, this activity

• A)is not included in GDP because it is not productive.
• B)could be included in GDP if the parent reports this activity in his or her income taxes.
• C)is not included in GDP because it does not involve a market transaction.
• D)is included in GDP because statisticians know that this activity has to take place.
• E)is included in GDP if the school system does not provide transportation for these children.

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Definitions:

Net Income

What remains as a company's profit once revenue is adjusted for taxes and expenses.

Return On Assets

A financial metric that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate earnings.

Price-Earnings Ratio

A valuation metric for stocks, calculating the ratio of a company's current share price to its per-share earnings.

Market Price

The current value at which a good, service, or asset is traded on the market, determined by supply and demand dynamics.