If National Income Accountants Fail to Make an Adequate Adjustment

question 43

Multiple Choice

If national income accountants fail to make an adequate adjustment for increases in the quality of goods and services over time,

• A) increases in real GDP will understate the growth rate of real output.
• B) increases in real GDP will overstate the growth rate of real output.
• C) the GDP deflator will overstate the rate of inflation.
• D) the GDP deflator will understate the rate of inflation.
• E) both a and c are correct.

Understand the distinction between trade deficit and trade surplus and their implications on international business.

Describe the process of exchange control and its impact on global business activities.

Know the global product strategies for firms looking to expand internationally.

Identify and differentiate modes of market entry for international business expansion.

---

Definitions:

Background Color

An attribute or property that sets the color behind an element or screen in web pages or graphical user interfaces.

Applet

A small application typically programmed in Java, that runs within a web browser or viewer.

Radio Buttons

GUI elements that allow users to select one option from a set, typically rendered as a small circle that can be filled or cleared to indicate selection.

Check Boxes

GUI components that allow the user to make a binary choice; typically used to select or deselect a single option.