Double Counting (Counting the Same Thing Twice) in GDP Accounting

question 226

Multiple Choice

Double counting (counting the same thing twice) in GDP accounting is avoided by not including

• A) net exports.
• B) intermediate goods.
• C) illegal activities.
• D) depreciation.

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Definitions:

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which determines its financial leverage.

Pre-tax Cost

The expense associated with a resource or activity before the effect of taxes is considered.

Semi-annually

Occurring twice a year, a term often used in reference to the payment of interest or dividends.

Coupon

In finance, a coupon refers to the interest payment received by a bondholder from the bond’s issuer at predetermined intervals until the bond’s maturity.