Which Statement Is Most Accurate

question 225

Multiple Choice

Which statement is most accurate?

• A)GDP is a very close approximation of our national economic well-being.
• B)GDP has virtually no relation to our national economic well-being.
• C)GDP does take into account leisure time,psychic cost,psychic benefits,and the underground economy.
• D)GDP,despite its shortcomings,gives us a reasonably useful picture of our national economic well-being.

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Definitions:

Total Cost

The sum of all costs incurred by a business in producing a certain amount of a good or service, including both fixed and variable costs.

Additional Unit

Refers to the next unit of product or service that is considered in the production or consumption decision-making process.

Marginal Benefit

The extra advantage gained by using an additional unit of a product or service.

Producing

The act or process of creating goods or services by combining labor, materials, and technology.