When Economists Use Market Values to Aggregate Output,they Sum the

question 52

Multiple Choice

When economists use market values to aggregate output,they sum the

• A) number of items produced.
• B) quantity of items produced.
• C) price multiplied by the quantity of items produced.
• D) social value of items produced.
• E) amount of each item produced.

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Definitions:

Life Of Equipment

The estimated duration for which equipment can be expected to operate effectively and be used productively by a business.

Annual Cash Inflow

The total amount of money received by a company over a year, from operations, investments, and financing activities.

Discount Rate

The discount rate applied in the discounted cash flow method to calculate the current value of anticipated cash flows.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows over a period of time.