GDP Would Be a Better Measure of Economic Well-Being If

question 128

Multiple Choice

GDP would be a better measure of economic well-being if it included:

• A)the costs of education.
• B)the total value of intermediate goods.
• C)the market value of final goods.
• D)the value of leisure.

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Definitions:

Equilibrium Quantity

The amount of goods or services supplied in a market that is exactly equal to the quantity demanded at the equilibrium price.

Rationing Device

A method used to distribute scarce resources, goods, or services among people.

Supply Shifts

Movements of the supply curve to the right or left, indicating a change in the quantity supplied at each price point, due to factors other than the price of the good itself.

Equilibrium Quantity

The quantity of goods or services supplied that is exactly equal to the quantity demanded at the market equilibrium price.