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:

Standard Deviations

A measure of the amount of variation or dispersion of a set of values.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data where most values cluster around the mean.

Inferential Statistics

The branch of statistics that allows one to make predictions or inferences about a population based on a sample of data taken from that population.

Normal Distribution

A statistical distribution where data is symmetrically distributed around the mean, forming a bell-shaped curve.