The Value Added Approach in Measuring GDP Is the Value

question 3

Multiple Choice

The value added approach in measuring GDP is the value of a firm's output minus

• A)The expenditures on personal consumption
• B)The change of inventories
• C)The value of inputs used to make those sales
• D)The value of foreign investment

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Definitions:

Moral Hazard

A situation in economic transactions where one party is willing to take risks because the negative consequences of the risk will be borne by another party.

Health Care Insured

Refers to individuals or entities that are covered under a health insurance plan, providing financial protection against medical expenses.

Diet And Exercise

A combined approach of nutritional intake and physical activity designed to improve or maintain health and fitness.

Moral Hazard

A scenario where one party takes risks or does not have the motivation to mitigate risk because another party is responsible for the fallout.