Gross Domestic Product Is the

question 124

Multiple Choice

Gross Domestic Product is the

• A)least inclusive aggregate used to measure the economy.
• B)total of goods and services desired by consumers.
• C)most comprehensive measure of total output in the United States.
• D)most accurate measure of the trade balance of the United States.

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Definitions:

Marginal Productivity Theory

An economic theory that explains how the value of a factor of production depends on its marginal contribution to the output.

Purely Competitive

A market structure characterized by a large number of buyers and sellers, homogeneous products, and free entry and exit from the market.

Marginal Revenue Product

This is the additional revenue generated by employing one more unit of a factor, such as labor or capital.

Marginal Productivity Theory

An economic theory proposing that input costs, such as wages, are determined by the additional output produced by the last unit of input used.