GDP Can Be Calculated by the Value-Added Approach, Which

question 184

Multiple Choice

GDP can be calculated by the value-added approach, which

• A)is useful in avoiding double counting.
• B)includes only the value-added portion from the sale of goods and services.
• C)includes the revenue a firm receives from selling a product minus the amount paid for goods purchased from other firms.
• D)All of the above correct.

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Definitions:

Riskless Assets

Financial instruments that are considered to have a negligible risk of loss, often associated with government bonds.

Binomial OPM

Binomial Option Pricing Model, a mathematical model used to price options by simulating different paths of price movements and calculating the payoff for each.

Borrow

The act of receiving funds from a lender with the agreement to pay back the original amount plus interest at a future date.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a specified price within a predetermined time frame.