Which of the Following Statements Is True

question 249

Multiple Choice

Which of the following statements is true?

• A)A decrease in the crime rate increases GDP as people will spend more on security.
• B)Household production is counted in GDP as it amounts to real production.
• C)GDP accounting rules do not adjust for production that pollutes the economy.
• D)GDP growth distributes income equally to people in the economy.

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Definitions:

Work in Process

Work in Process (WIP) inventory includes partially finished goods that are still undergoing the manufacturing process and are not yet ready for sale to customers.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.

Time Ticket

A time ticket is a document or record used to track the amount of time an employee spends on various tasks or projects, typically for billing or payroll purposes.

Pay Stub

A document attached to a paycheck that details the employee's pay information, including earnings and deductions.