Economists generally use GDP to measure a nation's total output because it is
a. equal to the sales value of all transactions conducted during a period and thus can be easily calculated.
b. the best available measure of the true costs of producing consumer goods.
c. unaffected by changes in the prices of products over time.
d. a relatively reliable measure of the value of all final product goods and services produced during a specific time period.
D
You might also like to view...
When the method used to collect a sample biases any conclusions that might be drawn from it, the sample is said to have a selection bias
Indicate whether the statement is true or false
In conducting normative analysis, economists apply
A. the principle of comparative advantage. B. the principle of individual sovereignty. C. the law of one price. D. objective value judgments.
Which of the following would increase U.S. GDP?
a. Ford Motor Company begins to produce and sell cars in China.
b. Mercedes-Benz begins to produce and sell cars in Mississippi.
c. An American investor buys 100 shares of Ford stock.
d. An American investor purchases 100 shares of Mercedes-Benz stock.
Which of the following represents a preventative measure against bank runs?
A. The President of the United States can order banks to pay depositors. B. The FDIC provides deposit insurance. C. The Federal Reserve can lower reserve requirements to ensure that banks have sufficient funds. D. None of these is correct.