Which of the Following Is Not a Component of GDP

question 113

Multiple Choice

Which of the following is not a component of GDP in the expenditures approach?

• A) government purchases
• B) workers' wages and other compensation
• C) gross private domestic investment
• D) the difference between exports and imports

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Definitions:

Critical Event

A significant occurrence that has a substantial impact on the operations or financial health of a business or market.

Measurability Conditions

Criteria required to recognize a financial transaction, including the ability to reliably measure the transaction's impact on the financial statements.

Percentage-Of-Completion Method

An accounting method used to recognize revenues and expenses of long-term contracts in proportion to the work completed.

Contract Costs

Expenses directly related to securing and fulfilling a contract, including raw materials, labor, and overhead.