What Does Double Counting in the Value-Added Approach to GDP

question 94

Multiple Choice

What does double counting in the value-added approach to GDP refer to?  

• A) corporate income being taxed twice 
• B) calculating GDP twice using the income method and the expenditure method 
• C) adding the value of exports to GDP and subtracting the value of imports 
• D) counting the total value of a final output in addition to the value of the inputs used to make it

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Definitions:

Incidence

The rate or frequency at which a new event or case occurs in a specific population over a certain period of time.

Internally Valid

The extent to which a research study provides evidence of a cause-and-effect relationship between variables, within the context of the study.

Confounds

Variables that researcher failed to control, or eliminate, damaging the internal validity of an experiment by providing alternative explanations for outcomes.

Experimental Manipulation

The deliberate alteration of the independent variable in an experiment in order to learn about its effects on the dependent variable.