Which of the Following Is True of the Gross Domestic

question 133

Multiple Choice

Which of the following is true of the gross domestic product (GDP) of a nation?

• A) It can be measured by the stock of consumer goods in the nation at a particular point in time.
• B) It can be measured by the stock of capital goods in the nation at a particular point in time.
• C) It can be measured by calculating either the total spending on production or the total income from that production.
• D) It is the sum of total spending on production and total income from that production.
• E) It can be measured from the stock of wealth in the nation.

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Definitions:

Components

The individual parts or elements that make up a larger product, system, or machine.

Depreciated Separately

An accounting method in which assets are depreciated individually, based on their own useful life and depreciation rate, rather than being grouped together with other assets.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial statements.

Sum-Of-The-Years'-Digits

An accelerated depreciation method that calculates annual depreciation by adding the asset's expected life years, assigning weights to each year, and depreciating more heavily in the earlier years.