If the Purchase of Used Goods Was to Be Incorporated

question 33

Multiple Choice

If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach,then

• A)we also will have to account for spending on financial assets.
• B)it will be very difficult to assign a fair market value to a used good.
• C)we will be counting the value of the used goods both at the time of their production and at the time of their re-sale.
• D)we will have to account for the natural depreciation that a used good experiences.
• E)consumption spending would need to be adjusted for depreciation.

Identify the economic changes and their impacts in 16th century Europe.

Recognize the significance of key treaties and edicts in European history.

Understand the role of key figures in the establishment of absolute monarchy in France.

Comprehend the social and military impacts of the Thirty Years' War.

---

Definitions:

Accelerated Depreciation

A method of depreciation that allocates larger depreciation charges to the earlier years of an asset’s life and smaller charges to later years.

Depletion

An accounting method used to allocate the cost of extracting natural resources over their productive life.

Total Asset Turnover

A financial metric indicating how effectively a company uses its assets to generate sales.

Amortization

The method of slowly deducting the initial value of an asset over time.