GDP Can Be Calculated by All of the Following Methods

question 96

Multiple Choice

GDP can be calculated by all of the following methods except

• A)Adding up the spending on goods and services by business,government,households,and foreigners,and subtracting imports.
• B)Adding up the "value added" at every stage of production in the economy.
• C)Adding up all of the receipts of households,government,and business.
• D)Adding up all income and expenses by consumers and businesses.

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Definitions:

Fixed Cost

A cost that does not change with the level of output or production, such as rent or salaries.

Short Run

A period in economics during which at least one input, such as plant size, is fixed and cannot be changed.

Physical Capital

Tangible assets such as buildings, machinery, and equipment used in the production of goods and services.

Variable Cost

Costs that vary directly with the level of production, such as raw materials, labor, and energy used in the manufacturing process.