Which of the Following Is True

question 110

Multiple Choice

Which of the following is true ?

• A)The GDP gap is the difference between actual real GDP and full-employment real GDP.
• B)We desire economic growth because it increases the nation's standard of living.
• C)Economic growth is measured by the annual percentage increase in a nation's real GDP.
• D)Discouraged workers are a reason critics say the unemployment rate is understated.
• E)All of these are true.

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Definitions:

Variable Selling Expense

Expenses that fluctuate in direct proportion to sales volume, including commissions and freight fees.

Fixed Manufacturing Overhead

Expenses related to manufacturing that remain constant regardless of the number of units produced, including property taxes and rent for factory buildings.

Direct Labour

The work performed by individuals directly involved in the manufacturing of products or providing services, whose costs are directly attributable to the products or services.

Direct Materials

The raw materials and components that are directly used in the manufacturing of a product and can be directly attributed to that product.