Double Counting (Counting the Same Thing Twice) in GDP Accounting

question 226

Multiple Choice

Double counting (counting the same thing twice) in GDP accounting is avoided by not including

• A) net exports.
• B) intermediate goods.
• C) illegal activities.
• D) depreciation.

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Definitions:

Private Ownership

Refers to assets or properties owned by individuals or companies and not by the government or public entities.

Government Services

The range of services provided by government agencies to citizens including sanitation, public education, healthcare, policing, and transportation.

Uncertainty Avoidance

A cultural dimension that describes how societies deal with the unknown, with high avoidance indicating a preference for clear rules and low avoidance reflecting more comfort with ambiguity.

Cultural Relativism

The perspective that beliefs, morals, and ethics are relative to each individual within his or her own social context.