Which of the Following Statements About GDP Is Correct

question 23

Multiple Choice

Which of the following statements about GDP is correct?

• A)GDP measures two things at once: the total income of everyone in the economy and the total expenditure on the economy's output of goods and services.
• B)Money continuously flows from households to firms and then back to households,and GDP measures this flow of money.
• C)GDP is generally regarded as the best single measure of a society's economic well-being.
• D)All of the above are correct.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually out of profits or reserves.

Working Capital

Current assets minus current liabilities, representing the short-term liquidity and operational efficiency of a business.

Current Ratio

An indicator of financial health showing whether a business can cover its short-term debts with assets that can be quickly converted into cash.

Acid-Test Ratio

A stringent indicator of a company's short-term liquidity, calculated by dividing liquid assets by current liabilities.