Which Statement About Nominal and Real GDP Is Incorrect

question 150

Multiple Choice

Which statement about nominal and real GDP is incorrect?

• A) Real GDP per person is a better measure of standard of living than nominal GDP per person.
• B) Canadian real GDP includes products and services produced by Canadian-owned businesses, no matter where in the world they are located.
• C) Real GDP is measured as a flow.
• D) Nominal GDP is measured as a flow.
• E) If real GDP is higher this year than last year, this indicates positive economic growth.

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Definitions:

Debt-Equity Ratio

A marker indicating the relative financing tactics of using debt and equity in company assets.

Return On Assets

A financial ratio indicating the profitability of a firm relative to its total assets, demonstrating how efficient a company is at using its assets to generate earnings.

Return On Equity

A financial performance metric determined by dividing net income by shareholders' equity, showcasing the efficiency of management in utilizing the company's assets to generate profits.

Times Interest Earned Ratio

A financial metric indicating how well a company can meet its interest obligations based on current earnings before interest and taxes.