GDP uses the market value of goods and services because it:
A. provides a common valuation that allows us to compare one economy to another.
B. provides the opportunity to compare lists of outputs to see who produced more.
C. is the only data that can be gathered about goods and services.
D. markets are the only way to value goods and services.
A. provides a common valuation that allows us to compare one economy to another.
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The price-specie-flow mechanism
A) is an automatic mechanism for assuring external balance under floating exchange rates. B) is an automatic mechanism for assuring external balance under the gold standard. C) is an automatic mechanism for assuring internal balance under floating exchange rates. D) is an automatic mechanism for assuring internal balance under the gold standard. E) is an automatic mechanism for assuring internal balance under mercantilism.
The demand curve for a monopolistic competitor slopes downward because: a. quantity demanded drops to zero after a slight price increase
b. there are close, but not perfect, substitutes for the product. c. customers have no loyalty to the product. d. the product is not differentiated in any way from those offered by other sellers.
In this graph, which of the following shows that profits have been eliminated in the long run?
a. The MC curve is tangent with the MRLR
b. The ATC curve is tangent with DLR
c. The MC curve crosses DLR
d. The MC curve crosses ATC curve
A U.S. firm that outsources jobs would be
A. Buying raw materials from a Chinese firm instead of a U.S. firm. B. Buying computers assembled in Mexico that used U.S. parts. C. Building a factory in Canada and hiring Canadian workers. D. All of the choices are correct.