When Measuring GDP,economists Count Only the Values of Final Goods

question 34

Multiple Choice

When measuring GDP,economists count only the values of final goods and services because

• A) the final value is taxable
• B) adding the values of intermediate products is too difficult a task
• C) the value of all intermediate products is automatically included in the value of those final goods
• D) intermediate products are overpriced
• E) the final cost is the selling price,which is what economists want to know

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Definitions:

New Equity

New equity refers to funds raised by a company through the issuance of additional shares of stock.

Compromise Policy

A strategy aimed at finding a middle ground among different stakeholders' interests or policy alternatives.

Dividend Policy

A company's strategy or set of guidelines for distributing earnings to shareholders in the form of dividends.

Taxes

Taxes refer to the compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.