Describe Two Different Uses of GDP,or Give Two Different Reasons

question 87

Essay

Describe two different uses of GDP,or give two different reasons to explain why it might be useful to calculate GDP.

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Definitions:

Capital

Economic resources that are used to create goods and services, such as buildings, machinery, and equipment.

Accounting Profit

Total revenue minus total explicit cost

Economic Profit

The distinction in the amount between total sales and all costs, inclusive of apparent and implied expenses.

Marginal Revenue

The extra revenue generated from the sale of an additional unit of a product or service, essential for establishing the best production quantities.