GDP Is Defined as the Market Value of All Final

question 182

Multiple Choice

GDP is defined as the market value of all final goods and services produced

• A)by the citizens of a country, regardless of where they live, in a given period of time; this definition focuses on GDP as a measure of total income.
• B)by the citizens of a country, regardless of where they live, in a given period of time; this definition focuses on GDP as a measure of total expenditure.
• C)within a country in a given period of time; this definition focuses on GDP as a measure of total income.
• D)within a country in a given period of time; this definition focuses on GDP as a measure of total expenditure.

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Definitions:

Zero Economic Profits

A situation in perfectly competitive markets where firms earn just enough revenue to cover their total operating costs, leaving no supernormal profit.

Positive Economic Profits

The situation in which a firm's total revenues exceed its total costs, including both explicit and implicit costs, signaling that the firm is doing better than the next best alternative.

Profit

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Monopolistically Competitive Firm

A company that operates in a market with many competitors, each offering products that are similar but not identical, allowing for some degree of market power.