When Computing U

question 147

Multiple Choice

When computing U.S. GDP, a good or service is weighted

• A)according to corporate concerns.
• B)according to the quantity of the good or service available.
• C)according to the concerns of pressure groups.
• D)according to government directive.
• E)according to its value.

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Definitions:

Long Run

A period in which all inputs can be adjusted by firms, allowing new firms to enter or exit the industry.

Constant-cost Industry

An industry where the input prices and costs of production do not change as the industry output changes.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied at those prices.

Purely Competitive

A commercial framework with a vast number of tiny enterprises, a single type of product, freedom to enter and leave, and total transparency of information.