In Computing GDP, Market Prices Are Used to Value Final

question 9

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 to the buyer.
• 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:

Detailed Costs

Breakdown of all individual expenses involved in a project including materials, labor, overheads, and any other costs.

High Complexity

Refers to situations, systems, or projects characterized by a high degree of multifaceted components, interactions, and intricate structures.

Activities Completed

Refers to the specific tasks or actions that have been finished within a project, contributing to its progress towards completion.

Measurement Units

Standardized quantities used to specify measurements, such as meters for length, kilograms for mass, and seconds for time.