The Purchase of a New Living Room Sofa from a Major

question 42

Multiple Choice

The purchase of a new living room sofa from a major furniture store would be explicitly counted when computing the gross domestic product by the ________ approach.

• A) income
• B) expenditures
• C) surplus value
• D) intermediate product
• E) standard of living

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Definitions:

Oil Rigs

Structures used for drilling wells to extract oil and gas from underground reservoirs.

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, making them part owners of the company.

Bondholders

Individuals or entities that own bonds, which are debt securities issued by corporations or governments.

Corporation

A legal entity that is separate and distinct from its owners, providing them with limited liability and the ability to raise capital by selling shares.