In Double-Entry GDP Accounting

question 139

Multiple Choice

In double-entry GDP accounting,

• A)the value of output produced must equal the value of resource payments generated in producing that output
• B)government is not counted because most of government spending is for transfer payments
• C)payments to resources must equal the value of goods sold to households
• D)inventories are counted twice,once as investment and once as output
• E)intermediate goods are counted twice,once as a type of output themselves and once as part of final output

---

Definitions:

Variable Cost

A cost that changes in proportion to the level of output or activity in a business.

Supply Chain Surplus

Supply chain surplus is the difference between the value a product provides to the customer and the costs of the supply chain in delivering the product.

Warehousing Needs

The requirements related to the storage, handling, and management of goods and materials in a warehouse.

Supplier Performance

The evaluation of how effectively and efficiently a supplier meets the requirements and expectations set by the buyer, including delivery, quality, and cost.