For Monitoring Fluctuations in the National Economy,which Measure of Income

question 65

Multiple Choice

For monitoring fluctuations in the national economy,which measure of income is best?

• A)GDP
• B)GNP
• C)NNP
• D)It does not matter very much which measure we use.

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Definitions:

Annual Dividend

The total amount of dividend payments declared by a company in one year, distributed to shareholders from its earnings.

Stock Price

The cost of purchasing a share of a company on the stock market.

Red Herring

A preliminary prospectus filed by a company with details about its operations and financials, intended to gauge investor interest before a final prospectus is issued.

SEC

Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry and stock markets.