How Are Final Goods and Services Valued When Measuring Nominal

question 9

Multiple Choice

How are final goods and services valued when measuring nominal GDP?

• A)at current market prices
• B)at base year prices
• C)at foreign exchange parity
• D)at factor market prices
• E)at producer cost

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Definitions:

Consumer Surplus

The contrast between the fee consumers are inclined to pay for a good or service and the fee they ultimately pay.

Public Policy

Public policy is a system of laws, regulatory measures, courses of action, and funding priorities concerning given topics, enacted and enforced by governmental entities.

Economic Efficiency

A condition in which all resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Consumer Surplus

The gap between the price consumers are prepared to pay for a good or service and the price they actually end up paying.