ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The dollar value of all final goods and services produced within a country’s borders in a given year
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the percentage of unemployed workers in the total labor force.
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a general increase in prices and fall in the purchasing value of money.
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the average period that a person may expect to live.
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Detailed explanation-1: -Gross domestic product (GDP) is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.
Detailed explanation-2: -Measuring GDP. GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year).
Detailed explanation-3: -GDP stands for “Gross Domestic Product” and represents the total monetary value of all final goods and services produced (and sold on the market) within a country during a period of time (typically 1 year). GDP is the most commonly used measure of economic activity.
Detailed explanation-4: -To avoid double counting-adding the value of output to the GDP more than once-GDP counts only final output of goods and services, not the production of intermediate goods or the value of labor in the chain of production. The gap between exports and imports is called the trade balance.
Detailed explanation-5: -Answer and Explanation: The statement, “Gross domestic product (GDP) measures total expenditures on final goods and services during a given period of time, ” is False. GDP measures total output, not total expenditures.