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

question 74

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) if market prices are out of line with how people value goods,the government sets price ceilings and price floors.
• D) None of the above is correct;market prices are not used in computing GDP.

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Definitions:

Psychosomatic

Referring to physical symptoms that are caused or significantly influenced by psychological factors, such as stress or anxiety.

Somat

Pertains to the body, especially as distinct from the mind or personality.

Psychosis

A mental disorder characterized by a disconnect from reality, which may include hallucinations, delusions, and impaired thought processes.

Delusions

False beliefs held with strong conviction, despite superior evidence to the contrary, often indicative of a psychological disorder.