Double Counting in the Resource Cost-Income Approach to GDP Statistics

question 166

Multiple Choice

Double counting in the resource cost-income approach to GDP statistics is avoided by

• A) correct accounting of the values of exports and imports
• B) choosing only one method to calculate GDP--either the income or the expenditures method
• C) counting only the value added at each stage of a good's production process
• D) counting the value of final and intermediate goods and services
• E) subtracting the total value of intermediate goods and services from the total value of final goods and services

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Definitions:

Adjustment Issues

Psychological difficulties in adapting to new or changing environments, situations, or life stages.

Parents Divorce

The legal termination of a marital relationship involving parents, which can have various emotional and psychological impacts on their children.

Psychosocial Development

(1) Pattern of change in emotions, personality, and social relationships. (2) In Erikson’s eight-stage theory, the socially and culturally influenced process of development of the ego, or self.

Industry

Refers to the economic sector concerned with the production, processing, and distribution of goods and services.