To Compute GDP

question 55

Multiple Choice

To compute GDP:

• A)simply sum the number of final goods and services.
• B)sum the cost of producing final goods and services.
• C)use a weighted average by a survey regarding how much people value different goods and services.
• D)sum the market values of final goods and services.

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Definitions:

Market Price

The ongoing value at which a commodity or service is offered for buy or sell in a trading environment.

Producer Surplus

The gap between the amount sellers are prepared to accept for a product and the actual selling price they obtain.

Crop Of Tomatoes

The product yield from cultivating tomatoes over a certain period or area.

Transaction

The exchange of goods, services, or funds between two or more parties, forming the basis of economic activity.