Which Approach to Calculating GDP Is Especially Useful in Clarifying

question 89

Multiple Choice

Which approach to calculating GDP is especially useful in clarifying the resale of existing goods?

• A) The expenditure approach
• B) The income approach
• C) The value-added approach
• D) Any of these measurements will allow that kind of clarification equally well.

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Definitions:

Closely Held Corporation

A corporation owned by a small group of people who might also be involved in its management, with shares that are not publicly traded.

Stock Market

A public market for the trading of company stock and derivatives at agreed prices.

Dividend Stream

Dividend Stream is the sequence of cash payments made to shareholders of a corporation over time, typically derived from the company's earnings.

Required Return

The least amount of return expected by an investor from putting money into a certain asset, while taking its risk profile into account.