Which Approach to Measuring GDP Is Being Used When Statistics

question 53

Multiple Choice

Which approach to measuring GDP is being used when Statistics Canada sums spending on goods and services for consumer goods, government, business investments and net exports?

• A)value added
• B)income
• C)factor cost
• D)expenditure
• E)opportunity cost

Understand the concept of total utility and how it is represented on an indifference map.

Interpret the slope of a budget line and what it reflects.

Explain the concept of marginal rate of substitution and its behavior along an indifference curve.

Identify the conditions for consumer's maximization of total utility using graphical analysis.

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Definitions:

Living Standards

The measure of financial wealth, comfortability, possessions in terms of goods, and necessary items afforded to a distinct social class or area.

Birthrates

The number of live births per thousand of the population in a given period, used as an indicator of population growth.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Market Rate

The prevailing price or interest rate at which goods, services, or securities are traded in a free market.