The Total Volume of Sales in an Economy Is Much

question 20

Multiple Choice

The total volume of sales in an economy is much larger than the value of GDP because:

• A) GDP understates the value of total output.
• B) the output approach to measuring GDP excludes intermediate transactions.
• C) GDP includes transfer payments.
• D) total sales include sales to foreign countries but GDP excludes sale of output to foreign countries.

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Definitions:

Social Media

Online platforms and technologies that facilitate social interaction, content sharing, and community building among users.

Marketing Firm

A company that specializes in creating strategies to promote, sell, and distribute products or services for their clients.

Venture Capitalist

An investor who provides capital to startup companies or supports small companies that wish to expand but do not have access to public funding.

Entrepreneur

An individual who identifies a business opportunity and takes on financial risk to create and manage a new venture with the aim of making a profit.