Which of the Following Rules Does Not Help Economists Avoid

question 5

Multiple Choice

Which of the following rules does not help economists avoid double counting in their computation of gross domestic product?

• A) Include only goods and services produced in the time period under study.
• B) Do not include intermediate goods in the computation of total production.
• C) Attribute to each industry only the difference between the value of its product and the value of its inputs.
• D) Exclude the value of any good or service exported to another country from which we purchase goods and services.
• E) Do not include transfer payments in the computation of total income.

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Definitions:

Total Assets

The sum of all resources owned by a company, valued in financial terms, and listed on the balance sheet.

Total Expenses

The sum of all costs and expenses incurred by a business or individual in a specific period.

Prepaid Rent Expense

An account that represents rent payments made in advance for a future period; classified as a current asset on the balance sheet.

Total Liabilities

The sum of all financial obligations a company owes to external parties, which can include loans, accounts payable, and bonds payable.