Which of the Following Statements Regarding the Gross Domestic Product

question 98

Multiple Choice

Which of the following statements regarding the gross domestic product is true?

• A)It is useful in comparing the overall performance of different economies at the same time.
• B)It measures aggregate income in an economy over a period of ten years.
• C)It measures the value of all goods and services produced in the world during a given period.
• D)It is a measure of an economy's price level during a particular year.
• E)It records the cumulative value of all goods and services produced by domestically owned factors of production.

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Definitions:

Contractual Right

A legally enforceable claim that arises out of a contract, allowing the holder to demand performance or compensation.

AASB 132

The Australian Accounting Standards Board standard relating to financial instruments, covering the presentation, classification, and disclosures of financial instruments.

Financial Asset

An asset that derives value from a contractual claim, such as bank deposits, bonds, stocks, and derivatives.

Equity Instrument

A financial instrument that signifies ownership in a company and represents a claim on part of the company's assets and earnings.