Which One of the Following Statements Is Correct

question 41

Multiple Choice

Which one of the following statements is correct?

• A)Real GDP and GDP are always equal in the base year.
• B)GDP always exceeds real GDP in the base year.
• C)2009 real GDP will exceed 2008 GDP if 2009 production is greater than 2008 production.
• D)Unlike GDP,real GDP includes estimates of voluntary and underground economic activity.
• E)If deflation occurs from 2008 to 2009,then the 2009 real GDP must be greater than the 2008 GDP.

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Definitions:

Differential Revenue

The difference in revenue generated from two different business decisions or periods, used to analyze the financial impact of those decisions.

Alternative Proposed Use

A potential use of resources or assets under consideration as an option different from their current application.

Cash

Money in the form of bills or coins, used as a medium of exchange; in accounting, it often refers to assets that are readily available for use.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.