Which of the Following Accurately Describes GDP

question 91

Multiple Choice

Which of the following accurately describes GDP?

• A)the sum of all currency and coins in circulation
• B)the value of all final goods and services produced by a government within a given period
• C)the value of all final goods and services produced anywhere in the world by a nation's firms within a given period
• D)the value of all final goods and services produced domestically within a given period

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Definitions:

Net Income

Net income is the total profit of a company after all expenses, including taxes and operational costs, have been subtracted from total revenue.

Accounts Payable

The amount of money owed by a company to its creditors for goods and services purchased on credit.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.

Expenses

The cost of assets consumed or services used in the process of earning revenue.