In the Generation of GDP, Pollution Often Occurs

question 64

Multiple Choice

In the generation of GDP, pollution often occurs.As a result,

• A)the value of nominal GDP will always be greater than the value of real GDP.
• B)the value of real GDP will always be greater than the value of nominal GDP.
• C)GDP is not always a good measure of economic or social welfare.
• D)the value of GDP is underestimated.

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Definitions:

Auditor's Report

A formal statement issued by an independent auditor as a result of an audit, evaluation, or review of an entity's financial statements, indicating the auditor's opinion on the veracity and fairness of the statements.

Unusual Item

An unusual item in financial accounting refers to a gain or loss that is unusual in nature and infrequent in occurrence, thus being reported separately in the financial statements.

Retirement Of A Bond

The process of paying off the principal amount of a bond at or before its maturity date, effectively canceling the debt obligation.

Long-Term Investment

Long-term investments are financial assets that a company intends to hold for more than one accounting year, such as stocks, bonds, or real estate.