If GDP Is $10 Trillion, Personal Consumption Expenditure Is $6

question 41

Multiple Choice

If GDP is $10 trillion, Personal Consumption Expenditure is $6.5 trillion, Gross Private Investment is $2.0 trillion, and Government Consumption and Investment Expenditures together are $2.0 trillion

• A)Net Exports are $0.5 trillion.
• B)Depreciation is $0.5 trillion.
• C)Indirect Business Taxes are $0.5 trillion.
• D)Net Exports are -$0.5 trillion.

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Definitions:

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, improving the accuracy of product and service costing.

Activity Cost Pools

A grouping of all costs associated with a particular activity, used in activity-based costing to allocate costs more accurately.

Machine-Hours

A measure of the amount of time a machine is operated for the purpose of producing goods.

Batches

Distinct groups of items or quantities produced or processed at the same time.