GDP Is a Measure Of

question 101

Multiple Choice

GDP is a measure of:

• A) domestic production.
• B) changes in the general level of prices.
• C) material well-being.
• D) social welfare.

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Definitions:

Production Costs

The total expenses incurred in the manufacturing or creation of a product or service.

Economic Profit

The difference between total revenue and total costs, including both explicit and opportunity costs, indicating true profitability.

Explicit Costs

Direct payments made to others in the course of running a business, such as wage, rent, and materials.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.