Double Counting in the Value Added Approach to GDP Refers

question 88

Multiple Choice

Double counting in the value added approach to GDP refers to

• A)corporate income being taxed twice
• B)the amount of income taxes paid to states that is taxable by the federal government
• C)calculating GDP twice using the income and expenditures methods
• D)adding the value of exports to GDP and subtracting the value of imports
• E)counting the total value of a final output in addition to the value of the inputs used to make it

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Definitions:

Carrying Amount

The value of an asset or liability according to a company's balance sheet, factoring in depreciation, impairment, and amortization.

List Price

The manufacturer's suggested retail price of a product before any discounts or allowances are taken into account.

Fair Value

Fair Value is the estimated market price of an asset or liability, reflecting what a willing buyer would pay a willing seller in an arm's length transaction.

Nonmonetary Productive Assets

Physical or tangible assets that do not have a fixed monetary value but contribute to the production capacity of a business.