Why Is GDP Computed Using Market Prices as the Value

question 32

Multiple Choice

Why is GDP computed using market prices as the value of final goods and services?

• A) because market prices do not change much, so it is easy to make comparisons between years
• B) because if market prices are out of line with how people value goods, the government sets ceilings and floors on them
• C) because costs change too much to reflect the value of goods and services
• D) because market prices reflect the value of goods and services

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Definitions:

Regulating Appetite

Regulating Appetite involves physiological and psychological mechanisms that control food intake, influenced by factors such as hormonal signals, presence of food, and learned behaviors.

Predominantly Homosexual

Refers to individuals whose sexual and emotional attraction is primarily towards people of the same sex.

Men

Adult human males.

Sexual Intercourse

A physical act between individuals that involves genital contact and can lead to reproduction and the expression of intimacy.