The Value-Added Approach of Measuring GDP Does Not Do the Following

question 36

Multiple Choice

The value-added approach of measuring GDP does not do the following.

• A)It includes the revenue a firm receives from selling a product minus the amount paid for goods purchased from other firms.
• B)It includes only the value-added portion from the sale of goods and services.
• C)It includes only the second-to-the-last value of the intermediate good used.
• D)It avoids double counting.

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Definitions:

Sudden Insight

A moment of sudden and clear understanding, often resolving a problem or grasping a complex concept instantly after a period of confusion or impasse.

Compound Word

A word composed of two or more separate words that are combined to create a new word with a unified meaning.

Overconfidence

The tendency to be more confident than correct—to overestimate the accuracy of our beliefs and judgments.

Hiring Ability

The capacity or skill of a person or organization to identify, evaluate, and recruit suitable candidates for employment.