Table 2.1 GDP and Its Components,2012

question 70

Multiple Choice

Table 2.1 GDP and its components,2012
-Assuming that the GDP breakdown shown in Table 2.1 is typical of a given year in the U.S.we can say that ________.

• A)we spend twice as much on services as we do on goods consumption
• B)consumption of nondurable goods is twice that of durables
• C)private investment is the smallest of the main domestic components of GDP
• D)all of the above
• E)none of the above

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Definitions:

Trading Securities Portfolio

A collection of marketable securities that a business holds for the purpose of reselling them in the short term to profit from market price changes.

Fair Value

An estimate of the price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Trading Portfolio

A collection of financial assets such as stocks, bonds, commodities, currencies, and derivatives held by an investor, primarily for the purpose of short-term speculation.