Which of the Following Statements Regarding the Gross Domestic Product

question 98

Multiple Choice

Which of the following statements regarding the gross domestic product is true?

• A)It is useful in comparing the overall performance of different economies at the same time.
• B)It measures aggregate income in an economy over a period of ten years.
• C)It measures the value of all goods and services produced in the world during a given period.
• D)It is a measure of an economy's price level during a particular year.
• E)It records the cumulative value of all goods and services produced by domestically owned factors of production.

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Definitions:

Supply and Demand

Economic principles stating that the price of a good is determined by its availability (supply) and consumers' desire to purchase it (demand).

Price of the Good

The amount of money required to purchase a specific product or service in the market.

Nation's Wealth

The total value of all assets and resources owned by a country, including natural resources, human capital, and financial assets.

Adam Smith

An 18th-century Scottish economist and philosopher, widely considered the father of modern economics, best known for his works on the principles of free market capitalism.