- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 10. Aggregate Output, Prices, and Economic Growth
- Subject 2. The Components of GDP and Related Measures
CFA Practice Question
Which statement is true?
B. Gross domestic product equals the sum of consumption, investment, and government expenditure.
C. GDP is a static concept since it measures the market value of production and this value is fixed (not variable) for a country.
A. Not all personal income is available for either consumption or saving.
B. Gross domestic product equals the sum of consumption, investment, and government expenditure.
C. GDP is a static concept since it measures the market value of production and this value is fixed (not variable) for a country.
Correct Answer: A
B is false: + net exports.
C is also false; GDP is a flow concept since the market value of production flows through the economy's factories and shops each year.
A is true. You must pay taxes. Disposable income is available for either consumption or saving.
B is false: + net exports.
C is also false; GDP is a flow concept since the market value of production flows through the economy's factories and shops each year.
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