One Problem with Using Real Gross Domestic Product as a Measure

question 60

Multiple Choice

One problem with using Real Gross Domestic Product as a measure of social welfare is that

• A)it fails to count home production.
• B)it fails to count services, a growing part of the economy.
• C)it double, triple, and sometimes quadruple counts goods that are produced in stages.
• D)it fails to account for imports, a growing part of the economy.

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Definitions:

Straight Line Amortization

A method of allocating an asset's cost evenly across its useful life.

Fair Values

An estimate of the market value of an asset or liability based on current market prices or valuations.

Retained Earnings

The cumulative amount of profits that a company has earned, less any dividends or other distributions to shareholders over its life.

Investment in Stanton Inc.

The total financial outlay made by an entity to purchase shares or a stake in Stanton Inc., reflecting an investment decision.