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.

Understand general assumptions underlying the retail inventory method.

Understand and apply the IFRS requirements for inventory valuation.

Identify and correct errors related to inventory accounting under a periodic inventory system.

Compute ending inventory using different inventory valuation methods.

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Definitions:

Excise Tax

A tax charged on specific goods and services, such as tobacco and gasoline, intended to reduce their consumption or raise revenue.

Deadweight Loss

A loss in social welfare that occurs when market equilibrium is not achieved due to externalities or market control.

Tax Structure Proposals

Recommendations or plans put forward to modify how taxes are imposed by the government, which can include changes in tax rates, bases, or the introduction of new taxes.

Pretax Income

The amount of income earned by an individual or corporation before taxes are deducted.