The Value of Corporate Stocks and Bonds Traded in a Given

question 184

Multiple Choice

The value of corporate stocks and bonds traded in a given year is

• A)included in the calculation of GDP because they make a contribution to the current production of goods and services.
• B)excluded from the calculation of GDP because they make no contribution to current production of goods and services.
• C)included in the calculation of net private domestic investment.
• D)included in the calculation of gross private domestic investment.

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Definitions:

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units, based on the percentage completion of those units.

Conversion

The process of changing raw materials into finished products or turning prospects into customers, depending on the context.

Weighted-Average Method

A method of inventory valuation which calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.

Equivalent Units

A concept in cost accounting used to express the amount of work done on partially finished goods in terms of fully finished units.