If the Price Index Was 100 in 2000 and 120

question 18

Multiple Choice

If the price index was 100 in 2000 and 120 in 2010,and nominal GDP was $360 billion in 2000 and $480 billion in 2010,then the value of 2010 GDP in terms of 2000 dollars would be

• A)$300 billion.
• B)$384 billion.
• C)$400 billion.
• D)$424 billion.

Understand the basic principles of accounting for investments including the cost method, equity method, and fair value method.

Identify and apply the equity method of accounting for investments in associates, including recognizing the investor's share of profits and losses.

Understand the journal entries required to record the acquisition, dividends received, and the revaluation of investments.

Distinguish between different methods of accounting for investments and the scenarios in which they are applied.

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Definitions:

State

A politically organized body of people usually occupying a definite territory; especially one that is sovereign.

Local Government Employees

Workers employed by municipal, county, or district authorities to provide services at the local level, including education, public safety, and infrastructure maintenance.

Civil Service Act

Legislation intended to secure a competent, honest, and impartial government workforce, often by means of a merit system.

Spoils System

A practice where a political party, after winning an election, gives government jobs to its supporters, friends, and relatives as a reward for working toward victory, and as an incentive to keep working for the party.