If We Add Up the Figures for Wages, Rent, Interest

question 39

Multiple Choice

If we add up the figures for wages, rent, interest and profit:

• A)the figure is not equal to the GDP by the expenditure approach because it does not include the amount of investment.
• B)the figure is not equal to the GDP by the expenditure approach because the Canadian national accounts do not reflect each of these four factors of income and also because a few adjustments are necessary.
• C)we obtain a figure which is equal to the GDP by the expenditure approach.
• D)it does not reflect the actual figure for the GDP by the expenditure approach because it does not include the amount of consumption.

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Definitions:

Short 100 Shares

The action of borrowing 100 shares of a stock to sell them with the expectation of buying them back later at a lower price.

Margin Call

A request from a broker to an investor to add more funds or securities to compensate for potential losses.

Short 100 Shares

The act of selling 100 shares of stock not currently owned, with the expectation that the stock can be bought back at a lower price in the future for profit.

Rate of Return

A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.