Real GDP Measures

question 16

Multiple Choice

Real GDP measures

• A) current output at current prices.
• B) current output at base year prices.
• C) base year output at current prices.
• D) base year output at current exchange rates.

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Definitions:

R&D Expenditures

Refers to spending on research and development activities by governments, businesses, or other organizations to innovate or improve products and services.

Economies of Scale

The economic benefits companies achieve through expanding their scale of activity, as the cost for every unit of output falls with the growth in scale.

Income

The financial earnings received by an individual or entity, typically measured over a certain period of time.

Utility-Maximizing

A principle in economics wherein individuals or entities make choices that result in the highest level of satisfaction.