Net Domestic Product

question 220

Multiple Choice

Net domestic product:

• A)is a better measure of output than gross domestic product because it controls for depreciation.
• B)is a worse measure of output than gross domestic product because it is distorted by depreciation.
• C)cannot be computed since economists have no measure of depreciation.
• D)increases as depreciation increases.

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Definitions:

Phi Phenomenon

The phi phenomenon is a visual illusion in which stationary objects shown in rapid succession, such as a string of lights, appear to be moving.

Stroboscopic Motion

An optical illusion where continuous motion is represented by a series of short or instantaneous samples, as seen in motion pictures.

Autokinetic Illusion

A visual phenomenon where a stationary small point of light in a dark environment appears to move because of involuntary eye movements.

Perceptual Illusion

A misinterpretation of a real external stimulus, illustrating how perceptions can differ from reality.