Which of the Following Statements Regarding GDP Is Correct

question 8

Multiple Choice

Which of the following statements regarding GDP is correct?

• A)GDP includes factory production,but not any harm that may be inflicted on the environment.
• B)GDP accounts for all activities taking place outside markets.
• C)GDP provides detailed information about the distribution of income.
• D)GDP is a good measure of economic well-being for all purposes.

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Definitions:

Net Income

The remaining profit of a company after it has paid all operational expenses and taxes from its revenue.

Credits

Entries on the right side of a double-entry bookkeeping system that increase liabilities, equity, or revenue accounts, or decrease asset or expense accounts.

Double-entry Accounting

An accounting system in which every transaction is recorded in at least two accounts, ensuring the accounting equation remains balanced.

Journal Entry

A record in accounting that represents every single transaction made by a company, detailing the financial activities.