Which of the Following Is the Best Definition of GDP

question 48

Multiple Choice

Which of the following is the best definition of GDP?

• A)the total value of all final goods and services produced in the economy during a given year
• B)the total value of all goods and services produced in the economy during a given year
• C)the total value of all primary, intermediate, and final goods and services produced in the economy during a given year
• D)the total value of all goods and services produced and sold in the economy during a given year

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Definitions:

Positive Economic Profits

Occurs when the total revenues of a firm exceed the total costs, including opportunity costs.

Total Costs

The comprehensive total of all spending required for the creation of goods or services, covering expenses that are both stationary and those subject to change.

Public Utilities

Entities that provide essential services to the public, such as water, electricity, and natural gas, often under government regulation.

Natural Monopolies

Industries where a single firm can supply the entire market at a lower cost than if there were multiple firms, often due to high fixed costs.