Which of the Following Is a Difference Between Net Domestic

question 70

Multiple Choice

Which of the following is a difference between net domestic product (NDP) and gross domestic product (GDP) ?

• A)GDP includes the cost of polluting the environment,while NDP does not.
• B)GDP excludes net taxes,while NDP includes it.
• C)GDP excludes that part of the capital stock used up in the production process,while NDP includes it.
• D)GDP includes all government spending,while NDP excludes government spending.
• E)GDP includes that part of the capital stock used up in the production process,while NDP does not.

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Definitions:

Volatile

Characteristic of a substance or entity that is likely to change rapidly and unpredictably, especially for the worse.

Historical Returns

The past financial performance of an investment, used to evaluate and compare the potential for future returns over time, drawing from historical data.

Semi-Strong Form

The semi-strong form of market efficiency hypothesizes that stock prices incorporate all publicly available information, suggesting that investors cannot earn excess returns through fundamental analysis.

Market Efficiency

A financial theory stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.