An Example of an Item That Would Be Excluded from a Measure

question 62

Multiple Choice

An example of an item that would be excluded from a measure of GDP from the expenditure side is

• A)the purchase of windows by an automobile assembly plant.
• B)fertilizer purchased by Farmer Jones to increase crop yields.
• C)buying tomato plants for your garden.
• D)government pension payments to a retired person.
• E)a new truck purchased by a furniture-delivery company.

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Definitions:

Bud Ltd.

is not a universally recognized key term; it might refer to a specific entity or business and its significance might vary by context. NO.

Equity Method

An accounting technique used to record investments in other companies where the investor has significant influence but does not control the company outright.

Consolidation Method

An accounting technique used for combining the financial statements of subsidiary companies with the parent company.

Statement of Earnings

A financial document that provides an account of a company's revenue, expenses, and profit over a specific period, also known as an income statement.