GDP represents all domestic production within the borders of the U.S. (yes, no) < Circle a correct answerGDP is a m________ m________ to make it possible to compare the relative worth of a diverse collection of goods and services over time. It is not possible to count the number of goods and compare them because the types of goods change over time. It is possible to count the number of goods and attach monetary values to them to reflect their relative worth and then compare the value of the output at different points in time. That is, m________ is the common denominator for GDP measure.

Answered: GDP is a m diverse collection of goods…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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GDP represents all domestic production within the borders of the U.S. (yes, no) < Circle a correct answer

GDP is a m________ m________ to make it possible to compare the relative worth of a diverse collection of goods and services over time. It is not possible to count the number of goods and compare them because the types of goods change over time. It is possible to count the number of goods and attach monetary values to them to reflect their relative worth and then compare the value of the output at different points in time. That is, m________ is the common denominator for GDP measure.

Expert Solution

Step 1

GDP or gross domestic product is the total market value of all the finished goods and services that are produced in an economy, within its borders, over a specific period of time. Only the goods that are produced domestically are to be included in the GDP and not the goods produced by residents of the domestic country but outside the country's border. GDP measures the monetary value of final goods and services and associating a price or monetary values to the goods to make it easier for comparison.