To Compute the Value of GDP

question 24

Multiple Choice

To compute the value of GDP:

• A)goods and services are valued at market
• B)prices. the sale of used goods is included.
• C)production for inventory is not included.
• D)goods and services are valued by weight.

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Definitions:

Herfindahl Index

A measure of market concentration calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.

Horizontal Merger

A merger between companies in the same industry, often aiming to create more market share or reduce competition.

Vertical Merger

A combination of two companies that operate at different stages within the same supply chain of a product or service.

Conglomerate Merger

A merger between firms that are involved in totally unrelated business activities.