Economists Measure the Total Output of an Economy in Order

question 173

Multiple Choice

Economists measure the total output of an economy in order to

• A) estimate the economy's consumption of resources.
• B) measure the overall level of prices.
• C) know how to adjust gross domestic product (GDP)for inflation.
• D) prevent the appearance of business cycles.
• E) gauge the economy's overall health.

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Definitions:

Liberalism

The political philosophy according to which the government should choose policies deemed just, as evaluated by an impartial observer behind a “veil of ignorance”.

Sum of Utility

The total satisfaction or benefit derived from consuming a particular set of goods or services.

Income Inequality

Refers to the uneven distribution of income and wealth across the different participants in an economy.

In-kind Transfers

Non-cash benefits provided by the government to individuals, such as food stamps, housing assistance, and medical services, aimed at meeting basic needs.