The Chain- Weighted Output Index Method of Measuring Real GDP

question 369

Multiple Choice

The chain- weighted output index method of measuring real GDP is based on

• A) using current prices rather than base year prices
• B) averaging the market value of the expenditures over a two year period and then comparing with a base period.
• C) averaging the nominal and real measures of GDP to come up with a more accurate figure.
• D) using the prices of two adjacent years to calculate the growth rate of real GDP.

Understand the processes and strategies for managing organizational change.

Understand the principles and components of Six Sigma as a quality improvement program.

Recognize the increasing demand for social responsibility from employers by employees and the public.

Appreciate the historical focus of HR departments and the evolution towards a more strategic role.

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Definitions:

Projected Net Present Value

An estimation of the present value of an investment's future net cash flows minus the initial investment cost.

Capital

Financial assets or the financial value of assets, such as cash or goods, used to generate income or wealth.

Internal Rate

A financial metric, often referred to as the internal rate of return (IRR), that calculates the profitability of potential investments.

Return

Total monetary flow of an asset as a fraction of its price.