Depreciation Is Subtracted from GDP to Get NDP.Depreciation

question 30

Multiple Choice

Depreciation is subtracted from GDP to get NDP.Depreciation

• A)represents the value of leisure goods
• B)measures changes in exchange rates
• C)represents income that we earn but do not receive
• D)represents investment undertaken merely to replace worn-out capital
• E)measures the effects of government subsidy programs

---

Definitions:

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to analyze the effect of one variable on another while holding other relevant factors constant.

Economic Variables

Quantitative measures that represent a characteristic of the economy or a part of the economy, influencing or describing economic activity.

Positive Economic Analysis

An objective approach to economics that focuses on describing and explaining economic phenomena without making normative judgments.

Fallacy of Composition

Erroneous view that what is true for the individual (or the part) will also be true for the group (or the whole).