Which of the Following Is NOT Part of GDP Calculated

question 122

Multiple Choice

Which of the following is NOT part of GDP calculated using the expenditure approach?

• A) General Motors' purchases of new capital equipment
• B) social security payments made to the elderly
• C) expenditures by the federal government for national defense
• D) the purchase of new homes by consumers

Understand and apply the concept of trade discounts and their effects on merchandise costs.

Calculate and understand the effects of sales discounts, returns, and allowances on gross profit.

Recognize the importance of the cost of merchandise sold and its calculation under perpetual and periodic systems.

Understand the preparation and components of a multiple-step income statement for a merchandising company.

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Definitions:

Function

A relation between a set of inputs and a set of permissible outputs, specifying a single output for each input.

Production Function

An equation that describes the relationship between the quantities of productive factors used and the amount of product obtained.

Returns To Scale

Describes how the output of a production process changes as all inputs are scaled up or down by the same proportion.

Input

Resources used in the production process to generate output, including labor, capital, materials, and energy.