A Drawback of Using Market Values to Aggregate the Quantities

question 209

Multiple Choice

A drawback of using market values to aggregate the quantities of goods and services produced in an economy is that:

• A)higher-priced items count more.
• B)GDP increases when not all goods are produced in greater quantities.
• C)market prices generally reflect the economic benefit consumers expect to receive from an item.
• D)not all economically valuable goods and services are bought and sold in markets.

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Definitions:

Willingness to Perform

Refers to an individual's readiness or eagerness to undertake a task or fulfill a role based on motivation or commitment.

Marginal Revenue

The incremental income earned from the sale of one additional unit of a good or service.

Demand Schedule

A demand schedule is a table that shows the quantity of a good or service that consumers are willing and able to purchase at various price points.

Monopoly

A market structure in which a single seller controls the entire market for a product or service, facing no competition.