GDP Ignores

question 23

Multiple Choice

GDP ignores:

• A)the value of mowing your lawn if you hired someone to do it.
• B)the value of cleaning your clothes if you took them to the laundry.
• C)the value of driving your kids to school if you hired a taxi to do it.
• D)the value of the air quality in your neighborhood.

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Definitions:

Variable Cost

Costs that change in proportion to the goods or services that a business produces.

General Transfer-Pricing Rule

A framework or methodology used to determine the price for goods or services transferred between divisions or subsidiaries of the same company.

Goal Congruence

A condition in which the goals of the organization's different members or departments align and support the overall objectives of the organization.

Perfect Competition

An ideal market scenario in which there are many buyers and sellers, homogeneous products, and no barriers to entry or exit.