GDP Can Be Measured

question 73

Multiple Choice

GDP can be measured

• A)either in terms of the total value of output produced or as the total value of consumer expenditures on goods and services.
• B)either in terms of the total value of output produced or as the total value of income generated in producing that output.
• C)either in terms of the total value of income generated in producing a nation's output or as the total sales of a nation's output.
• D)either in terms of the total value of inputs used to produce a nation's output or as the cost of producing of that output excluding profit.

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Definitions:

Consumer Equilibrium

The point at which the quantity of goods and services a consumer chooses to buy equates to the maximum satisfaction or utility for their budget.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods.

Consumer Equilibrium

The point at which an individual's income is perfectly balanced with their consumption preferences, maximizing utility.

Total Utility

The total satisfaction received from consuming a given total quantity of a good or service.