The Product Approach to Calculating GDP

question 37

Multiple Choice

The product approach to calculating GDP

• A)adds together the market values of final goods and services produced by domestic and foreign-owned factors of production within the nation in some time period.
• B)includes the market value of goods and services produced by households for their own consumption but excludes the value of the underground economy.
• C)is superior to the income approach because, unlike the income approach, it gives us the real value of output.
• D)adds together the market values of final goods, intermediate goods, and goods added to inventories.

---

Definitions:

Problem Solving

A process aimed at overcoming obstacles to achieve a goal or find solutions to complex issues.

Voting

The act of expressing one's choice or opinion in a formal selection process, typically used to make decisions in a group or to elect representatives.

Final Agreements

Conclusive understandings or contracts reached by parties after negotiations or deliberations, marking the end of a negotiation process.

Potential Pitfalls

Possible problems, risks, or drawbacks that may be encountered in a particular situation or course of action.