GDP Is a Good Measure Of

question 135

Multiple Choice

GDP is a good measure of:

• A)relative welfare in various countries.
• B)relative prices in various countries.
• C)relative living standards in various countries.
• D)market activities at market prices.

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Definitions:

Internal Economies

Cost-saving measures that arise from the expansion of a firm, affecting the production process internally.

External Economies

Benefits that a firm obtains due to the actions of others or external factors, leading to reduced costs.

External Economies of Scale

Cost advantages that a firm obtains due to the expansion of the industry in which it operates, but not due to its own expansion.

Industry Size

A measure of the total production or the total number of participants in a particular industry or market.