Which of the Following Is True

question 27

Multiple Choice

Which of the following is true?

• A)The GDP gap is the difference between nominal GDP and real GDP.
• B)Economic growth is a difference between last year's CPI and this year's CPI.
• C)Economic growth is measured by the annual amount increase in a nation's real GDP.
• D)Discouraged workers are not fully accounted for in the unemployment rate.

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Definitions:

External Environmental Costs

Costs incurred by society as a whole due to the environmental impact of a company's operations, often not reflected on the company's financial statements.

Triple Bottom Line

An accounting framework that broadens a business's focus on social and environmental concerns in addition to financial performance, embodying the principles of sustainability.

Sustainability

Involves practices and strategies that meet present needs without compromising the ability of future generations to meet their needs, highlighting environmental, economic, and social dimensions.

Economic Results

The outcomes related to the financial performance and economic health of a business or economy, reflecting growth or challenges.