The Value of the Housing Services Provided by the Economy's

question 112

Multiple Choice

The value of the housing services provided by the economy's owner-occupied houses is

• A)included in GDP,and the estimated rental values of the houses are used to place a value on these housing services.
• B)included in GDP,and the actual mortgage payments made on the houses are used to estimate the value of these rental services.
• C)excluded from GDP since these services are not sold in any market.
• D)excluded from GDP since the value of these housing services cannot be estimated with any degree of precision.

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Definitions:

FIFO Method

"First In, First Out," an inventory valuation method where the oldest inventory items are recorded as sold first.

Weighted Average Method

A computation that considers the different levels of significance of the numbers within a dataset.

Work in Progress

Inventory representing partially completed goods which require further work before they are ready for sale.

Equivalent Units

A metric used in cost accounting to express the work done on partially finished goods as an equivalent number of fully completed units.