In GDP Accounting, the Value of the Total Final Output

question 10

Multiple Choice

In GDP accounting, the value of the total final output in a given period equals the value of the:

• A) total income generated by the production of final goods and services in that period.
• B) net revenue earned from the sales of intermediate goods and services during that period.
• C) total profit earned by firms involved in the production of the output during that period.
• D) total inputs used in the production of the final output in that period.

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Definitions:

Rational Consumer

An assumption in economics that consumers always make logical decisions that provide them with the highest level of personal utility.

Net Borrower

An entity, such as a government or a business, that borrows more money than it lends, resulting in a net outflow of funds.

Interest Rate

The part of a loan that incurs interest for the borrower, generally expressed as an annual percentage of the outstanding loan.

Net Saver

An individual or institution that saves more resources or funds than they spend or consume.