Which of the Following Statements Is True

question 99

Multiple Choice

Which of the following statements is true?

• A) Nominal GDP = (price index ÷real GDP)×100
• B) Nominal GDP = (real GDP÷price index)× 100
• C) Real GDP = (price index ÷ nominal GDP)× 100
• D) Real GDP = (nominal GDP ÷price index)× 100
• E) Price index = (real GDP÷ nominal GDP)×100

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Definitions:

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.

Marginal Cost

The additional expense involved in making or acquiring one more unit of a product or service.

Downstream Division

The part of a company or industry involved in the later stages of the production process, including distribution and retail.