In computing GDP,market prices are used to value final goods and services because
A)market prices do not change much over time,so it is easy to make comparisons between years.
B)market prices reflect the values of goods and services.
C)market prices reflect the quantity sold.
D)None of the above is correct;market prices are not used in computing GDP.

Question

Quizplus · Accepted Answer

Market prices reflect the values of goods and services, so using them to value final goods and services gives a more accurate representation of the total value of production in an economy. This is why market prices are used in computing GDP.

In Computing GDP,market Prices Are Used to Value Final Goods