Comparing Two Countries' Nominal GDP Over Time Is Likely to Be

question 339

Multiple Choice

Comparing two countries' nominal GDP over time is likely to be misleading if one wants to determine whether standards of living are better in one country because

• A) the figures must be adjusted for different types of currency.
• B) the figures must be adjusted for price changes and population differences.
• C) the figures must be adjusted to account for production differences.
• D) NDP instead of GDP should be used.

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Definitions:

Gratuitous Promise

This is a promise made without requiring anything in exchange, often lacking legal enforceability because it lacks consideration.

Legal Obligation

A duty enforced by law, requiring an individual or organization to act or refrain from acting in a specific manner.

Statutory Provision

A specific piece of legislation enacted by a governing body that establishes legal requirements or regulations.

Common Law

A system of law based on precedent and customs, originating in England and forming the basis of the legal system in the United States and other countries.