Australian Real GDP

question 119

Multiple Choice

Australian real GDP

• A)measures the change in the price level over time.
• B)precisely measures the improving standard of living in Australia.
• C)includes the value of underground production but excludes the value of leisure time.
• D)excludes the value of underground production and leisure time.
• E)is not as accurate as nominal GDP when measuring standard of living changes over time.

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Definitions:

Private Goods

Private goods are products that are excludable and rival in consumption, meaning their use is limited to paying customers and one person's consumption prevents another's.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be negative (costs) or positive (benefits).

Not Excludable

A characteristic of goods or services that does not allow for the prevention of use by individuals who have not paid for it.

Not Rival

A characteristic of a good where its consumption by one individual does not reduce availability to others, often associated with non-rivalrous goods.