Two Methods of Measuring GDP Are

question 83

Multiple Choice

Two methods of measuring GDP are

• A)the income approach and the receipts approach.
• B)the goods approach and the services approach.
• C)the saving approach and the investment approach.
• D)the income approach and the expenditure approach.

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Definitions:

Increasing-cost Industry

An increasing-cost industry is one in which the entry of new firms raises the average costs of production, often due to limited resources or increasing prices for inputs.

Consumer Demand

The willingness and ability of consumers to purchase goods and services at different prices, influencing market dynamics and prices.

Market Price

The price of a good or service determined by supply and demand in a competitive market.

Purely Competitive Market

A market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to minimal market power for individual firms.