Which of the following is a way to compute GDP?
A)add up the wages paid to all workers
B)add up the quantities of all final goods and services
C)add up the market values of all final goods and services
D)add up the difference between the market values of all final goods and services and then subtract the costs of producing those goods and services

Question

Quizplus · Accepted Answer

GDP is the total market value of all final goods and services produced within a country in a given time period. Adding up the market values of all final goods and services is the correct way to compute GDP. Option A only considers wages paid and may miss out on other forms of income, while option B does not account for the value added during the production process. Option D is incorrect as GDP does not involve subtracting production costs.

Which of the Following Is a Way to Compute GDP