The production approach to measuring GDP requires ________
A) that the market value of a given good is a reasonable approximation of its economic value
B) that all goods and services be added up before assigning a market value
C) that no good or service rendered outside the market be included in GDP
D) all of the above
E) none of the above
A
You might also like to view...
Explanations for the decline in U.S. productivity in the 1970s and 1980s include all of the following except:
a. difficulties with measuring service sector output. b. the entry into the labor force of many young, inexperienced workers. c. a wave of corporate mergers that reduced competition. d. rising oil prices.
If the wage rate rises, labor's share in the total costs of a production process
a. will increase. b. will decrease. c. may increase or decrease depending on the elasticity of demand for the product. d. may increase or decrease depending on the ease of substitution of other inputs for labor.
How do markets respond to price ceilings and price floors? Do attempts to repeal the laws of supply and demand meet their objectives?
Inflation is defined as:
a) An increase in the price of expensive items, such as cars. b) An increase in relative prices. c) An increase in the average level of prices. d) The level of prices at full-employment.