GDP Counts Only Final Goods and Services Because This

question 192

Multiple Choice

GDP counts only final goods and services because this

• A) method avoids including any goods that are produced this year and sold next year.
• B) method avoids double counting of goods going through several stages of production.
• C) amount can be more easily determined in the marketplace.
• D) method avoids understating the value of GDP produced during a given year.

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Definitions:

Diseconomies of Scale

The phenomenon when a company or business grows so large that the costs per unit increase, leading to inefficiency.

Long-Run

A time period in economics where all inputs are variable, allowing firms to adjust all factors of production.

Average Cost Curve

A graph showing the cost per unit of output produced, calculated by dividing total costs by the quantity of output.

U‐Shaped

The U-shaped concept typically refers to a relationship where variables initially decrease, reach a lowest point, and then increase, forming a graph that resembles a U shape.