Suppose the Total Monetary Value of All Final Goods and Services

question 82

Multiple Choice

Suppose the total monetary value of all final goods and services produced in a particular country in 2010 is $500 billion and the total monetary value of final goods and services sold is $450 billion.We can conclude that:

• A) GDP in 2010 is $450 billion.
• B) NDP in 2010 is $450 billion.
• C) GDP in 2010 is $500 billion.
• D) inventories in 2010 fell by $50 billion.

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Definitions:

Budgeted Receipts

Estimated amount of money expected to be received over a certain period, often used in financial planning.

Merchandising Firm

A business entity that purchases finished goods and sells them to consumers with or without additional processing or packaging.

Merchandise Inventory

Goods or products that a company holds with the intention of selling them to customers.

Selling Expenses

Costs that are directly tied to the selling of goods and services, such as advertising, sales staff salaries, and commissions.