Which of the Following Is an Example of a Good

question 15

Multiple Choice

Which of the following is an example of a good that would not count toward U.S. GDP?

• A) A T-shirt made by H&M in Cambodia
• B) A T-shirt made by Organi-tee in Oregon
• C) A LED TV made by Toshiba in Georgia
• D) A bottle of spring water made by Poland Springs in Maine

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Definitions:

Fair Market Value

The price at which an asset would be exchanged between a willing buyer and seller, each having reasonable knowledge of all the relevant facts.

Fair Value Enterprise Method

A valuation technique that estimates the price at which an entire business would change hands, reflecting the present value of future earnings.

Total Assets

represent the summation of everything a company owns, both current and non-current, that can be used for paying debts, investments, or other operations.

Fair Value Enterprise Method

A methodology for valuation that estimates the value of an entire enterprise as if it were traded in the market, based on the fair value of its assets and liabilities.