Stock and Bond Sales Are Not Included in GDP Because

question 51

Multiple Choice

Stock and bond sales are not included in GDP because they

• A)do not occur in the year in which the production represented by them takes place.
• B)represent corporate production.
• C)represent indebtedness.
• D)are not goods and services.
• E)are not sold in the country in which they are produced.

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Definitions:

Contribution Margin

The selling price per unit minus the variable cost per unit, used to determine how sales affect net income.

Sales Projections

Estimates of the future sales revenue of a company, which are often based on historical sales data, market trends, and other relevant factors.

NPV

Net Present Value, a calculation used to determine the value of an investment by discounting future cash flows to their present value.

Payback Analysis

A financial analysis method used to determine the time required to recoup the cost of an investment or project.