If the Statistical Discrepancy Is Zero,in Order to Calculate GDP

question 100

Multiple Choice

If the statistical discrepancy is zero,in order to calculate GDP from the value of net domestic product at factor cost,we must add

• A)the value of intermediate goods and subtract the value of imports.
• B)direct taxes,subtract corporate profit,and add investment.
• C)indirect taxes,subtract subsidies,and add depreciation.
• D)subsidies,subtract indirect taxes and depreciation.
• E)indirect taxes,subsidies,and depreciation.

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Definitions:

Preemptive Right

The right of existing shareholders to purchase additional shares in a company before the company offers them to the public, to maintain their proportionate ownership in the company.

After-Tax Yield

The profitability of an investment after all taxes have been deducted, providing a true picture of the investment's return.

Required Return

The minimum rate of return that an investor expects to receive from an investment, accounting for risk preferences and inflation expectations.

Realized Return

The actual gain or loss generated on an investment, taking into account both dividends and appreciation.