To Best Determine Whether an Economy's Output Is Growing or Shrinking

question 137

Multiple Choice

To best determine whether an economy's output is growing or shrinking, one must keep track of changes in:

• A) nominal GDP.
• B) the growth rate of nominal GDP.
• C) the general price level.
• D) real GDP.

---

Definitions:

Cost Pools

Groupings of individual costs based on their similarity or a shared function, used in activity-based costing to allocate costs more accurately.

ABC System

Stands for Activity-Based Costing system, a method of allocating overhead and indirect costs to specific products or services based on their consumption of resources.

Prime Cost

Direct materials plus direct labor costs.

Machine Hours

The total number of hours that machines are used or operated during a specific time period, often used as a basis for allocating manufacturing overhead.