When the Production Process Extends Over More Than One Year

question 42

Multiple Choice

When the production process extends over more than one year, the value of the final product is:

• A)included in GDP for the year in which production began.
• B)included in GDP for the year in which production was completed.
• C)allocated to GDP in each year according to the value added in that year.
• D)allocated equally to GDP in each year.

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Definitions:

Zero Coupon Bonds

Bonds that do not pay interest during their lifetime and are sold at a discount to their face value.

Coupon Payment

A periodic interest payment made to bondholders during the life of the bond.

Par Value

A nominal or face value assigned to a share of stock by the company's charter, not necessarily reflecting its actual market value.

Government Of Canada

The federal administration and institutions of Canada, responsible for national policy and governance.