In GDP accounting, the value of the total final output in a given period equals the value of the:
A) total income generated by the production of final goods and services in that period.
B) net revenue earned from the sales of intermediate goods and services during that period.
C) total profit earned by firms involved in the production of the output during that period.
D) total inputs used in the production of the final output in that period.

Question

Quizplus · Accepted Answer

The value of the total final output in a given period is equal to the total income generated by the production of final goods and services in that period. This is because GDP measures the value of final goods and services produced in an economy, and this value is reflected in the income earned by households (wages, salaries, etc.) and businesses (profits) involved in the production of those goods and services.

In GDP Accounting, the Value of the Total Final Output