Which of the Following Statements About GDP Is Correct

question 2

Multiple Choice

Which of the following statements about GDP is correct?

• A)GDP measures two things at once: the total income of everyone in the economy and the unemployment rate of the economy's labor force.
• B)Money continuously flows from households to government and then back to households,and GDP measures this flow of money.
• C)GDP is to a nation's economy as household income is to a household.
• D)All of the above are correct.

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Definitions:

Activity Variance

The difference between the actual cost incurred for an activity and the standard cost set for that same activity.

Total Expenses

The sum of all costs and expenditures that a business incurs during a given period, including operating expenses, cost of goods sold, and other charges.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing better comparisons and analysis of performance.