In Computing GDP,market Prices Are Used to Value Final Goods

question 25

Multiple Choice

In computing GDP,market prices are used to value final goods and services because

• A)market prices do not change much over time,so it is easy to make comparisons between years.
• B)market prices reflect the values of goods and services.
• C)market prices reflect the quantity sold.
• D)None of the above is correct;market prices are not used in computing GDP.

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Definitions:

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An ancient Greek philosopher and scientist, whose writings cover various subjects including physics, metaphysics, poetry, theater, music, logic, rhetoric, politics, government, ethics, biology, and zoology.

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An ancient Greek philosopher who made foundational contributions to Western philosophy, student of Socrates and teacher of Aristotle.