Which Statement Supports the Idea of Using GDP as a Measure

question 72

Multiple Choice

Which statement supports the idea of using GDP as a measure of well-being?

• A) Countries with higher GDP tend to have more luxury cars.
• B) Countries with higher GDP tend to have more schools.
• C) Countries with higher GDP tend to have more fast food restaurants.
• D) Countries with higher GDP tend to have more food.

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Definitions:

Producer Surplus

The difference between what producers are willing to sell a product for and the actual price at which they sell it.

Market Supply Elasticity

A measure of how much the quantity supplied of a good changes in response to a change in price.

Supply Curves

Graphical representations showing the relationship between the price of a good and the amount of it that producers are willing to supply at that price.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, indicating the cost to produce an additional unit when fixed costs are excluded.