Double Counting in the National Income Accounts Will Be Avoided

question 9

Multiple Choice

Double counting in the national income accounts will be avoided if GDP is computed by totaling all:

• A)sales of final output.
• B)sales of final output and intermediate goods.
• C)sales.
• D)production costs.

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Definitions:

Deferred Payment Plan

A payment arrangement that allows payment to be postponed for a certain period, often used in loans and purchase agreements.

Finance Charge

The total cost of borrowing, including interest and any other fees, applied to credit or loan accounts.

Home Improvement Loan

A type of loan specifically designed to finance repairs, renovations, or improvements to a home.

APR

Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, inclusive of any fees or additional costs.