Which of the Following Is a Difficulty in Determining Current

question 73

Multiple Choice

Which of the following is a difficulty in determining current market values when determining the value of fixed assets?

• A) There is an absence of active markets for many fixed assets.
• B) It is difficult to identify comparable assets currently available in the marketplace to value assets in place.
• C) It is difficult to make assumptions about the effects of technology and other improvements when using the prices of new assets currently available on the market in the valuation process.
• D) All of these are correct.

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Definitions:

Nominal Gross Domestic Product (GDP)

The market value of all goods and services produced within a country in a given period, measured without adjusting for inflation.

Real GDP

The total value of all goods and services produced by a country in a year, adjusted for inflation, making it a measure of economic output that accounts for changes in the price level.

GDP Price Index

An indicator reflecting the variation in costs for all newly produced domestic final goods and services within an economy.

Real Gross Domestic Product (GDP)

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, showing true growth.