The four components of GDP (for instance, as designated in the GDP equation) are

Question

BlackTom AI · Accepted Answer

The question asks for the four components of GDP (as represented in the GDP identity).
Option a: 'consumption, investment, government expenditure, and foreign exchange.' Here, 'foreign exchange' is not a GDP component; GDP uses net exports, which equals exports minus imports. Since this option mislabels the fourth component, it is incorrect.
Option b: 'consumption, investment, transfer payments, and imports.' Transfer payments are not counted in GDP as a final good or service, and simply listing 'imports' ignores the subtraction that occurs in net exports (exports minus imports). This makes the option inaccurate.
Option c: 'consumption, investment, government expenditure, and net exports.' This aligns with the standard GDP identity: GDP = C + I + G + NX, where NX represents net exports (exports minus imports). This option correctly identifies all four components.
Option d: 'consumption, money supply, government expenditure, and exports.' 'Money supply' is a monetary variable, not a GDP component, and counting 'exports' without netting against imports would misstate the total. Hence, this option is incorrect.

EXMBM514-25B (HAM) Online Quiz 3 | 5%

The four components of GDP (for instance, as designated in the GDP equation) are

View Explanation

Log in for full answers

Similar Questions

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

The CVP and break-even analysis are supported by a range of important assumptions. Which of the following is not an assumption of the CVP:

The break-even point is that at which:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler