The Computation of GDP by Adding Up All Components of National

question 337

Multiple Choice

The computation of GDP by adding up all components of national income including wages, interest, rent and profits is

• A) the expenditure approach.
• B) the income approach.
• C) transfer payments.
• D) the value of all securities.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Price-earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to gauge if a stock is over- or under-valued.

Financial Analysis

The evaluation of a company's financial statements and other financial information to assess its performance, stability, profitability, and liquidity.

Sensitivity Analysis

A technique used to determine how different values of an independent variable impact a particular dependent variable under a given set of assumptions.