CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Which statement is true?

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

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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