Which of the Following Is Not Included in GDP Calculations

question 102

Multiple Choice

Which of the following is not included in GDP calculations?

• A)​the value of an accountant's services
• B)​the value of 500 shares of Microsoft stock sold to an investor
• C)​the value of high-definition television sets produced, but not sold, during the year
• D)​the value of a haircut

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Definitions:

M&M II

The second proposition by Modigliani and Miller which states that in the absence of taxes, bankruptcy costs, and asymmetric information, and in an efficient market, the value of a levered firm is equal to the value of an unlevered firm plus the present value of the tax shields due to debt.

Pre-Tax Cost

Pre-Tax Cost refers to the expense or cost a company incurs before any taxes are deducted.

Debt-Equity Ratio

A financial ratio indicating the relative proportion of shareholder's equity and debt used to finance a company's assets.

Weighted Average

A mathematical calculation that takes into account the varying degrees of importance of the numbers in a data set, providing a measure that reflects the relative importance of each value.