In Using the Expenditure Approach to GNP,consumption Includes

question 66

Multiple Choice

In using the expenditure approach to GNP,consumption includes

• A)all final and intermediate goods consumed by domestic households and firms.
• B)all final and intermediate goods consumed by domestic households produced at home,but not those produced abroad.
• C)all final goods consumed by domestic households produced at home,but not those produced abroad.
• D)all final goods consumed by domestic households produced at home and abroad.

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its business or to pay debt.

Market/Book Ratio

A financial metric comparing a company's market value to its book value, indicating how much investors are willing to pay above the net asset value.

Stock Price

The current price at which a particular stock is trading on the stock market.

Book Value

Book value is the value of a company or asset as recorded on the balance sheet, calculated by subtracting liabilities from assets.