Which of the Following Statements Is Correct

question 30

Multiple Choice

Which of the following statements is correct?

• A) GNP refers to the total value of all goods and services produced by a national economy.
• B) GDP refers to the total value of all goods and services produced by a national economy regardless of where the factors of production are located.
• C) Growth depends on output increasing at a faster rate than population.
• D) Per capita GDP is calculated by dividing purchasing power parity by the rate of inflation.
• E) Real GDP compares how much a system produces with the resources needed to produce it.

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Definitions:

Money

A medium of exchange, a unit of account, and a store of value, used to facilitate the sale, purchase, or trade of goods and services.

Zero-Sum Game

A situation in economic theory where one participant's gains result entirely from another participant's equivalent losses.

Exploitation

The act of using someone or something unfairly for one's own advantage, often without proper compensation.

Barter

The direct exchange of goods or services for other goods or services without the use of money.