Economists Generally Use GDP to Measure a Nation's Total Output

question 29

Multiple Choice

Economists generally use GDP to measure a nation's total output because it is

• A) equal to the sales value of all transactions conducted during a period and thus can be easily calculated.
• B) the best available measure of the true costs of producing consumer goods.
• C) unaffected by changes in the prices of products over time.
• D) a relatively reliable measure of the value of all final product goods and services produced during a specific time period.

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Definitions:

Nation-states

Political entities consisting of a sovereign state whose citizens or subjects are relatively homogeneous in factors such as language or common descent.

Autonomous

The quality of having independence or self-governance, capable of making decisions or operating independently from external control.

McDonaldization

Refers to the application of the rationalization principles of the fast-food industry to other sectors of society.

Rationalization

Is the application of the most efficient means to achieve given goals and the unintended, negative consequences of doing so.