It Is Difficult to Measure the Contribution of the Service

question 143

Multiple Choice

It is difficult to measure the contribution of the service sector to GDP because

• A) its contribution to GDP is very little.
• B) of large fluctuations in prices in the service sector.
• C) there are close ties between the service sector and illegal activities.
• D) it is difficult to determine what counts as a unit of output.

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Definitions:

Physical Movement

The actual transfer or change in location of goods, which can be relevant in the management of inventory and supply chains.

Perpetual System

An inventory system that continuously updates the balance of inventory after each purchase or sale.

Average Cost Formula

An inventory costing method that assigns the average cost of goods available for sale to both ending inventory and cost of goods sold.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal, essentially the net value obtainable.