The Factor Payments Measure of GDP

question 166

Multiple Choice

The factor payments measure of GDP

• A) can be expressed as GDP = C + I + G + NX
• B) is found by summing all expenditures on intermediate and final goods and services during the year
• C) calculates how much value was added at each stage of production
• D) is found by summing all interest,rent,profit,and wages and salaries generated during the year
• E) calculates how much workers paid for goods and services during the year

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Definitions:

Forecast Errors

Mistakes or deviations from the actual demand in predicting future sales or demand.

Aggregate Plans

Strategies for allocating resources in production to meet expected demand over a medium-term time frame, focusing on balancing supply with demand.

Planning Period Cost

The total expenses associated with planning and executing operations over a specific period, including materials, labor, and overhead.

Stockout

A situation in which the demand or request for a product cannot be fulfilled because the item is not in stock, leading to potential loss of sales.