When Measuring GDP,we Double Count If We Include the Value

question 55

Multiple Choice

When measuring GDP,we double count if we include the value of

• A) government expenditures.
• B) intermediate goods.
• C) nonmarket transactions.
• D) nonproductive transactions.
• E) net exports.

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Definitions:

Periodic Method

A method of inventory accounting where updates to inventory levels and cost of goods sold are made at the end of an accounting period.

Gross Method

An accounting method where purchases are recorded at their full purchase price without deducting any cash discounts.

Periodic Inventory Method

An accounting practice where inventory levels and cost of goods sold are calculated at predetermined intervals, such as monthly or annually.

Voucher System

A control mechanism in accounting that uses vouchers to record transaction details and authorize cash disbursements.