We Use the Value Added Approach in Calculating GDP to

question 329

Multiple Choice

We use the value added approach in calculating GDP to

• A)avoid double counting.
• B)account for market price differences.
• C)account for changes in population.
• D)account for consumer income differences.

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Definitions:

Worker Training

The process of providing employees with the skills and knowledge they need to perform their jobs effectively.

Real Wages

Wages that have been adjusted for inflation, reflecting the purchasing power of income.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate, across all jobs available in the economy.

Monopsonistic Employer

A labor market condition where a single employer significantly controls the market for workers and can dictate terms of employment.