An Increase in the Value of GDP Over Time

question 385

Multiple Choice

An increase in the value of GDP over time:

• A)is always due to an increase in prices.
• B)is always due to an increase in the production of goods and services.
• C)may be due to an increase in prices, in the production of goods and services, or both.
• D)may be due to a decrease in prices, in the production of goods and services, or both.

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Definitions:

Market Return

Market return is the profit or loss generated from investing in the stock market, typically measured as the percentage change in investment value over a specific period.

Preemptive Rights

The rights that allow existing shareholders to purchase additional shares before new shares are offered to the public, to maintain their proportionate ownership in the company.

Proportionate Ownership

The percentage of ownership in a company or property, directly correlating to the amount of shares or units an individual or entity possesses.

Efficient Market Hypothesis

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