In Computing GDP, It Is Essential to

question 15

Multiple Choice

In computing GDP, it is essential to

• A) avoid double counting.
• B) include government tax revenues.
• C) include government transfer payments.
• D) count all intermediate products directly as they are produced.

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Definitions:

AVC

Average Variable Cost refers to the sum of all variable expenses incurred when producing an item, divided by the number of units produced.

ATC

Average Total Cost is determined by dividing the overall cost by the output quantity produced.

MC

Short for Marginal Costs, representing the additional cost incurred in producing one additional unit of a good or service.

AVC

Average Variable Cost, which is the total variable costs of production divided by the quantity of output produced.