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Reading 20: Measuring Economic Activity-LOS b 习题精选

Session 4: Economics for Valuation
Reading 20: Measuring Economic Activity

LOS b: Differentiate between GDP at market prices and GDP at factor cost.

 

 

The modification of Gross Domestic Product (GDP) to reflect indirect taxes and subsidies is called the:

A)
GDP deflator.
B)
factor cost adjustment.
C)
gross national income (GNI).


 

The factor cost adjustment is utilized to allow consistent comparisons of the components of the GDP measure (expenditure, income, and output) as well as to isolate the effect of certain governmental policies upon productivity.

For which of the following is gross domestic product (GDP) adjusted to calculate GDP at factor cost?

A)
A value-added tax.
B)
Self-employment income.
C)
Rental income.


Factor cost adjustments to GDP include indirect taxes (such as a value-added tax) and subsidies.

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