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:

Rate Of Return

The financial escalation or contraction in value of an investment during a chosen duration, displayed as a percentage of the investment’s starting stake.

Stock Price

The cost of purchasing a single share of a company's stock, determined by the supply and demand for it in the market.

EPS Growth Rate

The yearly rate at which a firm's earnings per share (EPS) increases or is expected to increase.

Rate Of Return

The financial gain or loss achieved on an investment during a predetermined period, shown as a percentage of the investment's initial outlay.