In Computing GDP,market Prices Are Used to Value Final Goods

question 200

Multiple Choice

In computing GDP,market prices are used to value final goods and services because

• A)market prices reflect the values of goods and services.
• B)market prices do not change much over time, so it is easy to make comparisons between years.
• C)if market prices are out of line with how people value goods, the government sets price ceilings and price floors.
• D)None of the above is correct; market prices are not used in computing GDP.

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Definitions:

Null Hypothesis

A statement in statistical analysis that assumes no significant difference or effect, serving as the default assumption to be tested against an alternative hypothesis.

Level Of Significance

A threshold used in hypothesis testing to determine whether to reject the null hypothesis, commonly set at 0.05, indicating a 5% risk of concluding that a difference exists when there is none.

Test Statistic

A value calculated from sample data during a hypothesis test. It is used to determine whether to reject the null hypothesis.

Acceptance Region

In hypothesis testing, this is the range of values for which the null hypothesis is not rejected.