In computing GDP, market prices are used to value final goods and services because
a. market prices do not change much over time, so it is easy to make comparisons between years.
b. market prices reflect the values of goods and services.
c. market prices reflect the quantity sold.
d. None of the above is correct; market prices are not used in computing GDP.
b
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A price floor is considered
A) "fair" based only on the fair results view. B) "fair" based only on the fair rules view. C) "unfair" based on both the fair results and fair rules views. D) "unfair" based only on the fair results view. E) "fair" based on the fair results view and on the fair rules view.
Which of the following ideas apply to the neoclassical growth theory?
I. The rate of technological change influences the rate of economic growth. II. Technological change promotes saving and investment. III. Convergence of economic growth rates across countries A) I only B) III only C) I and II D) I, II and III
Explain what a "cap and trade" program is and how it works. Does the U.S. have a cap and trade program? If so, is it successful?
Economic analysis indicates the net long-run effect of outsourcing for the United States is likely to be
A) an increased demand for labor due to economic growth. B) a decreased in the demand for labor in the United States in the short run. C) an increase in the supply of labor. D) a decrease in the supply of labor.