When Calculating Gross Domestic Product (GDP),double Counting Can Be Avoided

question 69

Multiple Choice

When calculating gross domestic product (GDP) ,double counting can be avoided by:

• A)taxing corporate income.
• B)adding all income taxes to GDP.
• C)calculating GDP using the income as well as the expenditure method.
• D)adding the value of exports to GDP and subtracting the value of imports.
• E)summing the value added at each stage of production.

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Definitions:

Direct Labor

The labor costs directly associated with the production of goods or services, typically involving manufacturing or construction work.

Selling and Administrative Expenses

Costs associated with the selling of products and the management of the business.

Fixed Overhead

The total non-variable costs associated with operating a business, including rent, salaries, and insurance, that remain unchanged regardless of the level of production or sales.

Direct Labor

The wages and other forms of remuneration paid to employees who directly work on the products being manufactured, such as assembly line workers.