The product approach to calculating GDP
A. adds together the market values of final goods and services produced by domestic and foreign-owned factors of production within the nation in some time period.
B. is superior to the income approach because, unlike the income approach, it gives us the real value of output.
C. includes the market value of goods and services produced by households for their own consumption but excludes the value of the underground economy.
D. adds together the market values of final goods, intermediate goods, and goods added to inventories.
Answer: A
You might also like to view...
In a market undergoing technological change, firms that
A) adopt the new technology temporarily incur an economic loss. B) adopt the new technology temporarily make an economic profit. C) do not adopt the new technology temporarily make an economic profit. D) do not adopt the new technology increase their market share. E) do not adopt the new technology continue to make a normal profit.
If the world price is above the domestic "no-trade" equilibrium price, then with international trade, the shortage caused in the domestic market can be met by foreign imports
a. True b. False Indicate whether the statement is true or false
From 2001 to 2005 there was a dramatic rise in the price of houses. If this rise made people feel wealthier, then it would have shifted
a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left.
If an economy saves 20 percent of any increase in real Gross Domestic Product (GDP), then an increase in investment of $1 billion can produce an increase in real Gross Domestic Product (GDP) of as much as
A. $5 billion. B. $2 billion. C. $8 billion. D. $10 billion.