In Computing GDP,market Prices Are Used to Value Final Goods

question 25

Multiple Choice

In computing GDP,market prices are used to value final goods and services because

• A)market prices do not change much over time,so it is easy to make comparisons between years.
• B)market prices reflect the values of goods and services.
• C)market prices reflect the quantity sold.
• D)None of the above is correct;market prices are not used in computing GDP.

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Definitions:

Conditional Sales Contracts

Agreements where the sale is contingent upon certain conditions, often related to the buyer's full payment to the seller.

Sale-On-Approval

A contractual arrangement where the buyer takes possession of goods with the right to return them within a specified period if they are not satisfactory.

Buyer to Take Possession

The obligation of a buyer to take control or ownership of purchased goods or property.

Used Car Problems

Issues or defects associated with purchasing a pre-owned vehicle, often concerning its condition, history, and reliability.