Machine-translated by Google. Questions are authored in English.
Top

Discussion

GNP is equal to

  • A.total output of goods and services in one year
  • B.total output minus intermediate consumption
  • C.total output minus savings
  • D.total output plus total factor payments

Answer: B

Correct answer: total output minus intermediate consumption

National output must be counted net of intermediate consumption, or the same value would be counted at every stage of production. Only the value added at each stage - that is, final goods and services - enters GNP.

No comment is present. Be the first to comment.
Loading…

Post your comment

Please log in or register to post a comment.