GDP Can Be Measured by the

question 6

Multiple Choice

GDP can be measured by the

• A)total value of all sales in the economy.
• B)total market value of final goods and services produced in the economy.
• C)total value of all intermediate goods produced in the economy.
• D)net national product plus investment.

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Definitions:

Defective Parts

Components of a product that fail to meet quality standards or are damaged, requiring repair or replacement.

Warranty Expense

The estimated cost related to the future servicing of products sold that is recognized as an expense by a company.

Extended Warranty

An extended warranty is an additional warranty covering the repair and maintenance of items beyond the standard warranty period, usually at an extra cost.

FICA Payroll Tax

Federal taxes in the United States that fund Social Security and Medicare, required to be withheld from employees' paychecks and also matched by employers.