The Components of the Expenditure Approach to Measuring GDP Include

question 202

Multiple Choice

The components of the expenditure approach to measuring GDP include all of the following EXCEPT

• A) government expenditure on goods and services.
• B) investment.
• C) net exports.
• D) the implicit payments for unpaid household work.

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Definitions:

Security

Financial instruments or assets held to back debts or investments, or as a means to ensure the fulfillment of financial obligations.

Insurance Contract

A legally binding agreement between an insurer and the insured, detailing the terms for the payment of claims under certain conditions.

Securities Act

A law or legislation that regulates the issuance and sale of securities to protect investors against misrepresentation, deceit, and other frauds.

Proxy

A document evidencing the transfer of a shareholder’s voting right to an appointee, either with instructions for voting, or allowing discretion to be exercised by the appointee, at a meeting of shareholders of the corporation.