Which of the Following Would Contribute to GDP

question 105

Multiple Choice

Which of the following would contribute to GDP?

• A) An American company buys stock in another American company.
• B) An American company produces goods in Canada.
• C) A Canadian company buys stock in an American company.
• D) A Canadian company produces goods in the United States.

Recognize how income distribution changes over time and the effects of life events on income mobility.

Analyze factors contributing to poverty, including education, employment, and family dynamics.

Describe the role of government transfer payments and social insurance programs in addressing poverty and inequality.

Examine the impact of demographic factors and policy decisions on poverty rates and income inequality.

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Definitions:

Acquisition Differential

The gap between what is paid to buy a company and the net worth of its recognizable assets and debts.

Equity Method

A financial recording method for logging investments in subsidiary entities where the investor has considerable sway but lacks complete dominance.

Goodwill

An intangible asset that arises when a company acquires another business for a price higher than the fair value of its identifiable net assets.

Equity Method

An accounting technique used when an investor holds significant influence but not full control over an investee, allowing the investor to record a proportionate share of the investee's profits or losses.